Motoring With Tawanda Matanhire: Rebates For Civil Servants


After a busy week addressing inquiries directed to my inbox about vehicle rebates, today’s focus is on the package for civil servants.

Most civil service workers are curious about how they are supposed to benefit from rebates.

Civil servants should not shy away from the Zimbabwe Revenue Authority (ZIMRA) offices to inquire their status as beneficiaries.

Below are the steps one should take:

Any member should submit an application to the Head of their parent Ministry (HOM) requesting authority to import a vehicle under the scheme. This follows a process whereby the HOM assesses whether the member meets certain conditions outlined below before any recommendation letter is granted:

Conditions to meet the recommendations denote that a member of the civil service:

i) Has served at least 10 years of continuous service in the Public Service or Service Commissions except in cases approved by the Commission.
ii) Has a valid Driver’s Licence and in the case of a member living with disability, a valid Driver’s Licence of a designated driver.
iii) Is not subject to any disciplinary proceedings at the time of application.
iv) Has not benefitted from this scheme within a period of five years prior to submission of this application.

If the member satisfies the above criteria, the HOM will forward the recommendations together with the relevant copies of Driver’s Licence and current pay slip (original) to the Public Service Commission (PSC) for clearance.

Once clearance has been granted, the PSC shall forward the recommendations to Treasury for concurrence. When Treasury concurrence has been granted, the member may proceed to import a suitable vehicle of choice.

However, it is not always a smooth flow as there are more specifications that should be met for one to be granted the concurrence:

i) The vehicle should not be older than 10 years from date of manufacture at the time of importation, unless specifically exempted from this requirement by the PSC in consultation with Treasury.
ii) The Government shall grant rebate of duty on a motor vehicle with a maximum import value of US$10 000

NB: According to Statutory Instrument 80A of 2022, grade B and C in the civil service can import vehicles with a maximum value of US$3 500, those in D and E US$5 000 and deputy directors US$10 000.

iii) The vehicle must meet the specifications under the Customs Tariff Codes

Once these two processes are complete, for the rebate of duty on import of a motor vehicle to be processed, a member shall submit the following documents to the Zimbabwe Revenue Authority (ZIMRA):

i) Recommendation letter from the Head of Ministry.
ii) Clearance from the Public Service Commission
iii) Treasury concurrence
iv) Copy of a valid Driver’s Licence and in the case of a member living with disability, a valid Driver’s Licence of a designated driver
v) Commercial invoice and bill of landing
vi) Proof of residence
vii) Copy of identity card

However, there is a caveat. Civil servants must take note that the grant of rebate of duty on the motor vehicle purchased shall be revoked immediately when a member resigns or is discharged from the Public Service before the expiry of five (5) years from the date when the rebate was granted. Such a member will immediately be liable to pay duty for the vehicle.

Rebate shall not apply to heavy vehicles, but those with light weight. According to SI 80A of 2022, commodity code heading 87.02 provides that rebate shall not apply to motor vehicles designed for transporting 15 or more people, including the driver.

Commodity code heading 87.04 also states that rebate shall not apply to motor vehicles whose gross vehicle weight exceeds five tonnes and shall apply only to single cabs.

A lot of questions that surfaced from last week’s article had to do with people who have served but are no longer in service. Well, in this case rebate is only considered for members who are currently active and have served the required time.

It is important that before you apply, you get to know the actual vehicle you want to ship in and at least have a quote of the price. It is also a necessity to inquire that it meets the required status.

Next week I will be concluding the topic on rebate paying particular focus on returning residents. Many are returning to the country ignorant of this benefit only to get a rude awakening. Nhau/Indaba

For more information on sales in and around Zimbabwe please feel free to contact me directly.
WhatsApp: 0775355031
Email: tmweshona@gmail.com

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