ZIPAR backs motor vehicle age-limit calls
Published On June 7, 2015 » 1767 Views» By Administrator Times » Business, Stories
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.Siamunene

.Siamunene

By KENNEDY MUPESENI –

THE introduction of age limit for imported second-hand vehicles will reduce car maintenance repair burden in Zambia, the Zambia Institute for Policy Analysis and Research (ZIPAR) has observed.
Recently, Transport, Works, Supply and Communication deputy minister Richwell Siamunene said Government would introduce a maximum age limited on imported used vehicles entering the country to ensure quality and safety.
In a policy research statement, executive director Pamela Nakamba-Kabaso said ZIPAR research findings showed that the average age of Zambia’s motor vehicle fleet had increased from 12 to 15 years in 2014 hence the need to put an age limit to imported vehicles.
“Firstly older cars are more unreliable and likely to breakdown, which means that Zambian consumers are increasingly risking buying a car which is not good value for money-it might only last few years on road.
“Secondly, it will make it harder to reduce the high rate of car crashes on our roads thereby affecting the economy,” Dr Nakamba-Kabaso said.
According to ZIPAR research ,the proportion of vehicles without roadworthiness certification had increased from 14 in 2006 to 32 per cent in 2013 while the average age of entire fleet-including those without roadworthiness certification has increased from 13 in 2006 to 17 years last year.
Analysts project the average age of the entire fleet to reach 20 years in the next five years which is expected to cause greater car maintenance and repair burden to the country.
To address the issues of ageing and fitness, ZIPAR has proposed that relevant authorities should strengthen pre-shipping road-worthiness assessments.
There is need to make changes to the current import duty and exercise tax treatment for imported motor vehicles adding that the current tax treatment of imported motor vehicle incentivises the purchase of older ones.
Relevant authorities should consider placing a cap on the age of vehicles imported into the country and this measure would entail limiting the allowable age of used imported motor vehicles.
In long term, ZIPAR said there was need to commence motor assembly and refurbishment of affordable and popular models in the place of imports which could be done through Public Private Partnerships (PPPs) and other incentives that could be attract purely private investments.

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