Call to review commuter omnibus vehicle duty payment

PUBLIC transporters have called on the Government to review commuter omnibus (kombi) vehicle duty payment and registration saying disparities in charges were crippling their operations.

Speaking during the Transport and Infrastructural Development strategic planning workshop last week, Bulawayo Public Transporters Association (Bupta) official Mr Morgan Msipa, complained over lack of uniformity for commuter vehicles’ duty at the border despite that the vehicles were used for the same purpose.

“We have various vehicles that are charged different duty levels when they are brought into the country. They are then used as kombis despite the fact that at the border they were recorded as disabled vehicles. A panel van has got another level of duty and a kombi with seats has got another level of duty,” he said.

“But when it comes into the country it’s used just as a commuter vehicle. So, it’s our request that in terms of duty may the Ministry of Finance through our parent ministry, revisit this and if it possible Government should correctly register these vehicles at the border.”

Buses with a carrying capacity of 26 passengers and above pay 40 percent, double cab trucks 60 percent, and passenger motor vehicles of engine capacity below 1500cc attract duty of 40 percent. Those vehicles with engines above 1500cc are charged 86 percent duty inclusive of VAT and surtax.

Mr Msipa said registration of vehicles at the border should make sure that they were charged correct duty.

“If the Government feels that some people might cheat in terms of what they are going to use the vehicle for, they must be registered at the border.

“They must be given the red number plates at the border to show that it’s a kombi so it needs to be charged correct duty. Let’s say 35 percent, 20 percent or 10 percent rather than 100 percent or 105 percent,” he said.

Mr Msipa also called on the relevant authorities to decentralise issuance of operators’ licences saying this was affecting them in terms of costs as they have to go to Harare for such documentation.

“The fees set up by the ministry affects us as kombi operators. For example, we are being charged $30 for the garage letter. The Ministry of Transport (and Infrastructure Development) must relook into this issue and conform to Sadc protocols on the doing business things,” said Mr Msipa.