Friday 27 November 2020

Owning A Car Becomes Harder As Mthuli Ncube ‘Bans’ Importation Of Second Hand Vehicles Older Than 10 Years


The 2021 Budget which was presented by the Minister of Finance and Economic Development Mthuli Ncube yesterday, seems to have underwhelmed many. In the budget, Ncube made it harder for the ordinary person to own a car, by putting restrictions on the importation of second-hand vehicles, which had become the staple for many first-time vehicle owners.

According to the Minister, the country has spent a massive US$1.3 billion in 5 years, importing second hard cars and buses. To curb the spending on second-hand cars and to promote the local industry, the Minister removed all cars that are older than 10 years from the Open General Import Licence. This means that from 2021, people will need a special import license if they want to import older cars. The new restrictions do not apply to commercial vehicles, such as trucks, tractors, and earthmoving equipment used in mining or construction.



Mthuli Ncube 'Bans' Importation Of Second Hand Vehicles
Mthuli Ncube ‘Bans’ Importation Of Second Hand Vehicles


In presenting the 2021 Budget Statement, Mtuli said,

Mr Speaker Sir, about US$1.3 billion was spent on imported buses, light commercial and passenger motor vehicles from 2015 to September.

This is despite the existence of capacity by the local motor industry to assemble the above-mentioned range of motor vehicles.

Furthermore, due to lack of effective standards and regulation, road unworthy vehicles, which, in some instances fail to meet environmental and safety standards, find their way onto the market.

In line with the NDS1, which underscores value addition, I propose to remove second-hand motor vehicles aged 10 years and above, from the date of manufacture at the time of importation, from the Open General
Import Licence.

In the interim, commercial vehicles such as tractors, haulage trucks, earth-moving equipment and other specialised vehicles used in mining and construction will be exempt from this requirement.

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