In November 2015, the Minister of Finance and Economic Development, Patrick Chinamasa delivered his budget statement for 2016. In that budgetary statement, there were a number of announcements, but one of them stood out for buyers of second-hand vehicles: new calculation of excise duty on change of ownership of a vehicle.
If a vehicle is bought, the new owner has 14 days to report to ZIMRA and CVR and do a change of ownership, failing which they are liable to a fine. When they are doing the change of ownership, ZIMRA used to look at your agreement of sale and calculate how much excise duty you should pay on the sale. If they were happy with the amount in the agreement of sale, all was well, if they disputed that amount that you claim to have paid for it then they’d do their own “assessment”.
That has changed as of 1 January 2016.
The amount to be paid to ZIMRA for Special Excise Duty on the change of ownership of second-hand motor vehicles is calculated as per the schedule below.
Please note that this schedule DOES NOT apply to the clearance of second-hand motor vehicles on importation into the country. The valuation method by ZIMRA is still applicable in those situations.
|Number of Years from Date of Manufacture||Engine Capacity||Special Excise
Duty Rate (US$)
|0 - 4 Years||1000cc||$300|
|5 - 10 Years||1000cc||$150|
|11 - 15 Years||1501-2000cc||$150|
|16 - 20 Years||1000cc||$50|
|Above 20 Years||All Engine Capacity||$50|