Surcharge on imported vehicles long overdue
Published On October 16, 2015 » 1663 Views» By Davies M.M Chanda » Features
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•A K2,000 surcharge has been proposed in the 2016 Budget by Finance Minister Alexander Chikwanda on vehicles, imported into Zambia, of more than five years from the year of manufacture.

•A K2,000 surcharge has been proposed in the 2016 Budget by Finance Minister Alexander Chikwanda on vehicles, imported into Zambia, of more than five years from the year of manufacture.

By Hicks Sikazwe –
A vehicle is a need and it is good to own one. But even much more better to have a car in top notch condition and more exhilarating to walk into a show room and drive a model at zero kilometres complete with interior plastic covering.
Thanks to the flurry of second hand Japanese vehicles available for purchase through the Internet, almost every one with a reasonable income in Zambia – from a vendor to company executive – can afford to import a type of choice.
Can you then visualise the debate that followed a K2,000 surcharge proposed in the 2016 Budget by Finance Minister Alexander Chikwanda on vehicles, imported into Zambia, of more than five years from the year of manufacture?
Ndola vehicle dealers found at a social gathering presented varied views: “That means the cost of vehicles will have to go up,” noted one. “Why not? We shall just pass that cost to consumers (buyers),” intoned another.
“As long as you people will not price yourselves out of business because already there are too many vehicles we see around with ON SALE stickers on them.
“Some have run with the sale signs for four months,” cautioned a listener to the conversation.
The benefits of the surcharge are twofold: The Government will rake in good revenues while the move would encourage people to bring vehicles which are in a much better condition and will serve them better and longer.
Admittedly the cheap Japanese second hand vehicles have had a positive impact on Zambia socially or economically.
Many people, including civil servants, in the form of police officers, soldiers, teachers and medical workers are driving.
Some procured them through the avalanche of Government loans, others have simply worked hard to put money together and buy.
It is also true that the imports have boosted Zambia’s informal sector. There has been an increase in setting up of tyre-mending outlets that have absorbed an army of jobless youths from the streets.
There are also a countless number of garages not only providing service to owners but also providing what to do to many.
Look around every street in your city, town or rural district; they are awash with motor spare parts dealers either at small-scale level or commercial point.
In big cities like Lusaka, Kitwe or Ndola vehicle spares are waved at motorists as they drive past traffic lights while some are sold along shop corridors or any open places available for vending.
But on the other hand the increase in the vehicle population in Zambia, induced by cheap imports, is a recipe for an environmental disaster.
More vehicles on the country’s roads means more pollution, especially that most of the vehicles imported into the country were manufactured a long time (others as old as 20 years ago), their engines are weaker and thus jut more offensive fumes.
Due to the ever changing technology once some of them break down they cannot be repaired because spare parts are not available as they are no longer being manufactured.
Take a walk around townships, by the time you complete touring one like the sprawling Chibufu in Ndola or the famous Matero in Lusaka you will find even up to 50 vehicles in back yards permanently impounded by one reason or another.
In a few years to come it will not be surprising to have dumped junk vehicles as the commonest of neighbours than human beings  as the country will have nowhere to throw the lot.
Beyond that, in cities like Lusaka and slowly Kitwe driving is no longer a marvel because of congestion caused by an exploding vehicle population.
In Lusaka it is common for people to leave homes around 5:30 hours for work if they are to avoid congestion.
When knocking off others are compelled to stick around in the office until after 19 hours or even 20, just to allow a let-up on the roads.
The purpose of owning a vehicle gets defeated if you are going to leave home for work at dawn and return close to midnight just to avoid congestion.
There is, therefore, a good case in the K2,000 surcharge imposed on vehicles that are older than five years from the year of manufacture.
In fact, if the motive to introduce the penalty was to control importation of cheap vehicles there will be very little impact.
As a long-term measure to achieve that, the Government needs to emulate South Africa and Kenya.
While Kenya does not allow imports of more than five years old, South Africa does not even tolerate anyone driving a Japanese import on the country’s roads.
Zambians who import Japanese vehicles using the port of Durban are forced to hoist their burden on carriers to either the Zimbabwean border or that of Botswana.
One reason Pretoria is doing that is to protect the local motor industry.
After the destruction of the manufacturing sector by second hand clothes, commonly known as salaula, it will be vital for the country to act prudently and proactive over any form of cheap imports more so second hand vehicles.
Instead of rich countries using Zambia as a dumping ground for their discarded metal, the Government could demand better investment that would create jobs.
For example, instead of opening floodgates to second hand vehicles, why not let Japan, the United Kingdom, the United States, Korea or country or firm set up vehicle assembly plants here in Zambia?
Many people will remember the Livingstone Motor Assemblers, the Land Rover Assembly plant in Ndola and another for Toyota trucks in Kasama.
Why not revisit that kind of investment again?
Such investment will not only boost the economy but would provide employment for Zambians and, above all, afford them to drive durable and environment-friendly vehicles.
On the other hand the country needs more measures that would induce people with income to buy brand new vehicles from show rooms by creating an enabling environment.
One of the ways is for employers to set up revolving funds that could facilitate loans to workers to procure new vehicles. The other is for banks and other financial institutions to relax the prohibitive lending rates.
For a country so battered by a copper economy and seeking to revitalise the diversification programme, radical and sometimes unpopular measures will be vital. Otherwise, the surcharge on second hand vehicle imports was long overdue, it must be supported.
(The writer is a former Times of Zambia Deputy editor- in Chief)
Comments:hpsikazwe@yahoo.co.uk or 0955929611

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