By Own Correspondent| In his budget statement, Finance minister Mthuli Ncube has revealed that government will, with immediate effect, charge all customs duty on commercial motor vehicles in forex.

Said Ncube:

“… Government has, over the years, implemented demand management measures with a view to redirecting usage of the scarce foreign currency to productive industries.

Such measures include adjustments to the customs duty regime and control of imported goods through the licensing system. Despite some success, Government has, during the course of 2017 and 2018, witnessed a surge in the importation of nonproductive goods, particularly motor vehicles.

In order to redirect the use of scarce foreign currency to the productive sectors of the economy, I propose that customs duty on motor vehicles be levied in foreign currency acceptable as legal tender, with effect from 23 November 2018.

This measure will, however, not apply on imports of commercial motor vehicles and vehicles for use by the physically challenged. Furthermore, payment of customs duty in foreign currency will also apply to selected goods. This measure will also apply to all import VAT and Surtax.”