By CHATULA KANGALI –
IMPORTATION of second hand vehicles from Japan through Nakonde border in Muchinga Province has reduced by 65 per cent due to an increase in clearing duty tariffs and the instability of the exchange rate.
Last month, the Zambia Revenue Authority (ZRA) increased the duty clearing tariffs from 25 to 35 per cent and imposed a K2,000 penalty on vehicles that are 10 years old from the date of manufacturing.
The Zambia Association of Clearing Agents (ZACA) has, however, bemoaned the slow business from clients from the time the Kwacha depreciated.
ZACA member Gibson Mwanamuke said in an interview that clearing business in Nakonde had slowed down because clients were unable to import vehicles due to increased duty tariffs and instability of the exchange rate.
Mr Mwanamuke said a number of clearing agents were leaving the border because of lack of business.
“Clients have stopped buying vehicles because of the instability of our currency and this time around, things have become worse because duty tariffs have increased and there is now a penalty imposed on vehicles that were manufactured 10 years ago,” he said.
Mr Mwanamuke said only 35 per cent of the clients were affording to import second hand vehicles from Japan through the Nakonde border post.
Another member Mathews Chewetu said, he used to clear about 10 vehicles in a month but the situation was different now with no vehicle to clear.
Mr Chewetu said Nakonde had no industries and that the clearing business was a major source of income for the majority of the people.
He said ZACA had a membership of more than 2000 clearing agents of which the majority were Nakonde residents.
Mr Chewetu appealed to Government to consider reviewing the increase in duty tariffs in order to save the clearing business in Nakonde.