Brian Sedze CIRCUMSTANCES under which the late MDC founder Morgan Tsvangirai’s BMW was impounded where that the law was breached because a vehicle on temporary import permit (TIP) or with foreign plates can only be driven by an authorised foreigner.
For the vehicle to be released, it has to either pay duty or a penalty. The penalty is calculated as a percentage of the duty which was to be levied if it was to be permanently imported.
Each day the BMW remains in Zimbabwe, it incurs daily charges such that in a year, what is required to be paid may be more than the value of three similar cars.
A vehicle on TIP cannot be released to a local but has to be driven back to South Africa by a South African as per the TIP.
After issuance of receipt for items held (RIH), the South African pays a penalty or fine plus duty and takes the vehicle to South Africa within 60 days.
If the vehicle exceeds 60 days in the country, it will be seized.
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So after 60 days when people were being emotional, it may have had no basis at law and Zimbabwe Revenue Authority (Zimra) could have sold the vehicle on rummage sale.
Now MDC Alliance supporters are contributing money to buy its leader, Nelson Chamisa, a bullet-proof vehicle.
This follows an incident where Chamisa’s convoy was allegedly shot at in Mutare recently during his citizens’ convergence meetings.
MDC Alliance supporters around the globe have so far raised more than US$120 000 towards the purchase of the bullet-proofed car.
There is concern that Chamisa’s car mighty fall in the same predicament as Tsvangirai’s that, up to now continues to gather dust at a police station in rural Matabeleland.
Chamisa’s vehicle is not being brought into the country under similar circumstances, so they must err on the side of caution.
This is because the Political Parties Finance Act prohibits:
- Foreign funding and;
- Solicitation for donations from foreigners.
This is subject to Zimra or police interpretation etc.
If the donation is for Chamisa as an individual, it will be well, but then if it is a donation to an individual it will be very hard to justify why it has to be bullet proof or armoured.
If it is for him as a politician or a party president or for furthering a political agenda, it may be impounded again.
The Political Parties Finance Act will be the ideal weapon this time.
It will be impossible to prove that only Zimbabweans donated on a global platform.
Another major factor is that value for duty purposes is now set at US$48 000 and value added tax at US$17 500 00.
Such funding will be required.
Even if they produce an invoice below US$120 000, the duty is likely to be based on the third valuation method, not on the invoice.
Bullet-proof or armoured vehicles may require a special import permit.
They must think through this carefully because the vehicle can be impounded at the port of entry and it will be within the law.
- Brian Sedze is strategy consultant and president of Free Enterprise Initiative. He can be contacted on brian.sedze@gmail.com