Details of the rebate are set out in a letter from George Guvamatanga, permanent secretary in the Ministry of Finance, Economic Development and Investment Promotion, to Zimbabwe Revenue Authority (ZIMRA) commissioner-general Regina Chinamasa.
“The facility would cater for only one motor vehicle imported by a Zimbabwe Exemption Permit (ZEP) holder… All motor vehicles would be cleared under suspension of duty, whereby VAT would remain payable… ZIMRA would apply flexible valuation terms to ensure that the VAT payable on the vehicles would be minimal.”
Guvamatanga said no permits will be required for vehicles more than 10 years old, adding that the exemption will apply only to vehicles bought before the Zimbabwe Exemption Permit (ZEP) expired in December 2022.
“For personal property and equipment of a commercial nature. Rebate of duty would apply on personal and household property, as well as property of a commercial nature, which presumably the returnees would have been using in their businesses,” reads the letter.
“The exempted property would have been purchased prior to the expiry of the ZEPs, that is, prior to 31 December 2022.
“There would be flexibility with respect to time of arrival in order to accord residents who returned by December 2022 ample time to clear their goods.”
Guvamatanga stressed that measures would be put in place to stop the immigrants’ rebate being abused.
“This is subject to the appropriate evaluation in order to limit potential abuse of the facility by non-qualifying returning residents. Furthermore, the facility will not apply to new items.
“In the case of motor vehicles, the returnees are required to meet the conditions that ordinarily apply to immigrants. These include prior ownership of the motor vehicle.”