Import duty may be down, but there's a lot more to pay
IMPORT DUTY having been slashed doesn't make importing exclusive foreign marques of cars a cut-price way for boys and girls to get new toys.
A major forwarder pointed out to FTW that the other import levies on imported cars have an effective maximum rate
of just under 100%.
"It is true that these rates have come down from the 100% applicable some years ago to between 32% and 47.5%," he said. "But cognisance must also be taken of other charges payable on importation."
Excise duty is payable on a sliding scale, with
a 20% maximum. VAT is payable, at the time of importation, at the standard rate of 14%.
"The snag here," FTW was told, "is that these rates are nominal only - and are calculated on inflated values.
"The value for excise duty purposes is the value of the car - plus 15% - plus duty. The value for VAT is the value of the car - plus 10% - plus duty - plus excise duty.
"To this must be added other costs such as freight, wharfage, insurance and clearing."
There's another stumbling block for the prospective buyer, according to our forwarder.
"They should note that there is now a prohibition on importing left-hand drive vehicles," he said. "The only exceptions relate to vintage cars and collectorÕs items."
A final complication. "As is the case with all other used or second-hand items," said our spoilsport contact, "used vehicles also require import
permits."
