Tax Talk with ZIMRA- Traveler’s rebate

In terms of Statutory Instrument 22A of 2012, the following items — when they are imported for personal use — can now be cleared under the traveler’s rebate with effect from 23rd February 2012: l Clothing (whether new or second-hand) and shoes. Statutory Instrument 22A of 2012 was published in the Extraordinary Government Gazette of 23rd February 2012. Types of Traveller’s Rebate

The traveller’s rebate is a duty-free allowance which is granted to bona fide travellers, subject to prescribed conditions.

It is divided into two categories, namely total rebate and partial rebate.

Total rebate is an allowance granted on all used personal effects.

Personal effects means articles pertaining to or carried upon the body such as used clothes and toilet requisites but excludes such articles as radios and cameras, among others.

Partial rebate is an allowance granted on goods imported by a traveller once a month on the date of his/her first entry into Zimbabwe in that calendar month on condition that:-

l Goods are properly declared.

l Goods are not for resale or of a commercial nature.

l The value of goods does not exceed US$300.

l Alcoholic beverages are not more than five (5) litres of which not more than two (2) litres may be spirits and the traveller is 18 years and above.

l The traveller is not a crew member.

l The goods exclude blankets, refrigerators and stoves.

Who enjoys Traveller’s Rebate?

Any traveller entering Zimbabwe, namely:

l Returning residents

l Tourists/visitors,

l Immigrants and diplomats.

Any person employed as the pilot or master or any member of the crew of an aircraft or vehicle arriving from outside Zimbabwe is excluded from enjoying the travellers’ rebate.

Example to demonstrate treatment of traveller’s rebate

Let us assume that our traveller who meets all the conditions that are necessary for one to enjoy the traveller’s rebate is importing the following goods into Zimbabwe.

The values that are indicated are values for duty purposes:

Personal new clothing US$160

Stove US$150

Refrigerator US$120

Personal new shoes US$40

Two blankets each weighing 5 kg US$40

Iron, kettle, heater, utensils US$160

Total US$610


Goods that qualify under rebate:

Personal new clothing US$160

Personal new shoes US$40

Iron, kettle, heater, utensils US$160

Total US$360

Rebate allowance = US$300

Excess = $360 – $300 = US$60

Duty on excess = $60 x 40% = US$24

Duty on goods that do not qualify under rebate

Duty on stove and refrigerator is US$270 x 40% = US$108.

Duty on blankets is (US$40 x 40%) + (US$1,50/kg x 10 kg) = US$16,00 + US$15,00 = US$31.

Total duty payable US$24 + US$108 + US$31 = US$163.

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