GOVT’S 6% LEVY ON DUBAIS HIKES PRICES

MBABANE – Motor vehicle buyers are now reverting to auctions to purchase Dubais as the cost has almost been doubled by car dealerships following the imposition of a six per cent levy.  

This was evident at the Swaziland Revenue Authority auction of ‘Dubais’ where nearly 70 people were in attendance to bid for nearly 20 vehicles on offer. Instead of opting to buy relatively new vehicles sold by Dubai car dealerships, most of whom are concentrated at the Matsapha Industrial Sites, business people and individuals opted to make bids at the auction.

At the auction, bidders went away with the imported vehicles at bargain prices. The highest final bid price was  E34 000  for a Toyota Altezza while the lowest was for a VW Golf 4 sold for E3 000.       

Dubais as they are commonly known locally, refer to motor vehicles imported from countries outside Africa, especially Asia. Minister of Finance Martin Dlamini recently introduced an import levy on non-Southern African Customs Union (SACU) used vehicles of three and six per cent levy, respectively.
The levy, which is not yet being collected by the SRA, has been imposed strictly on all motor vehicles being imported into the kingdom from outside the region.
Dlamini, in exercise of powers conferred by section three of the Import and Control Order of 1976, explained that the three per cent of total value will be imposed on every motor vehicle that is between six to 10  years old.

For a motor vehicle that is 11 to 15 years old, a levy of six per cent of free on board customs value will be charged.
During random interviews of business people conducted at the SRA Warehouse in the Matsapha Industrial Sites yesterday, the common stance was to the effect that Dubais were  no longer as affordable as before the levy imposition because prices had been hiked to cushion effects of the levy which has attracted more business costs.

MNF Plastics’ Assif Iqbal said with the advent of the levy, profitability of the car dealerships business would continue to decline. He said this would also be compounded by the recent announcement that Value Added Tax (VAT) would also increase to 15 per cent at the beginning of the incoming month which will prompt consumers to spend less.

“Business people will have to be determined to thrive in the businesses,” said Iqbal.   
In terms of the notice which may be cited as the Imported Motor Vehicle Levy of 2018, an imported motor vehicle means a motor vehicle imported outside SACU.
A ‘Dubai’ motor services dealer, based at the Matsapha Industrial Sites who preferred to be quoted only as Mohammed, said news of the import levy were not good for their business. He said they were forced to hike prices to accommodate the newly imposed levy.

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