The Zimbabwe Revenue Authority (ZIMRA) has impounded more than 100 high-end and luxury vehicles illicitly imported into the country. The tax authority is currently conducting a nationwide operation to target vehicles that were undervalued at ports of entry and those suspected of being in the country without the proper temporary import permits. These illegal practices result in significant losses of potential revenue for the tax authority each year.
During the operation, 118 vehicles were intercepted for various offences in Bulawayo and Harare. The joint enforcement activity is focused on violations such as temporary import permit violations, motor vehicle undervaluation, immigrant rebate fraud, suspension of duty on immigrants’ motor vehicles fraud, and year of manufacture fraud to circumvent license requirements. Zimra is determined to crack down on all violations of the Customs and Excise Act related to vehicles.
Zimra’s head of corporate communications, Mr. Francis Chimanda, emphasized that this operation serves as a stern warning to individuals involved in fraudulent practices at the ports of entry. Chimanda told The Sunday Mail:
Currently, we are utilising roadblocks and patrols in a joint operation with other law-enforcement agencies.
We are doing post-clearance verifications in the Automated System for Customs Data.
We are also improving the presence of enforcement officers on the ground to enhance compliance, penalising offenders and collaborating with security agencies like the Zimbabwe National Roads Administration and Central Vehicle Registry.
The tax authority will intensify its efforts to identify and penalize entities and individuals who undervalue vehicles. They are utilising roadblocks, patrols, and post-clearance verifications to enhance compliance and collaboration with other law enforcement agencies and security agencies.
ZIMRA aims to restore confidence in the country’s revenue collection system and create a fair and just economic environment by impounding vehicles and imposing fines on offenders. The thorough assessment and valuation of impounded vehicles will determine the accurate customs duty and taxes owed. According to tax expert Mr Tafadzwa Chingoma, this crackdown on undervalued vehicles and other customs violations not only aims to recoup lost revenue but also acts as a deterrent for future attempts at undervaluation and promotes a culture of compliance within the importation process.