Government bemoaned on huge custom duty


By Geoffrey Banda JNR

…devaluation, huge custom duties impinge business

Malawi’s Second hand car dealers have described devaluation of Kwacha and heavy custom duties on importation as major setbacks for their business.

second hand cars
Used cars

In an interview with The Malawi Star, Japanese Second hand car sellers in town of Limbe described developments as worrisome and call for government interference.

According to,chairperson for Big Ten Car Sellers group Emmanuel Sitima, business has been distasteful following the intensive devaluation of Kwacha causing heavy losses.

“The devaluation was going up and up every day and now and if we compare with 2013 there is a little bit change because from 2014 the devaluation has been going down too much and this has affected our business greatly,” explained Sitima.

He further described high government’s rates on the second hand car importation custom duty as another challenge the business is facing.

According to current system, government is charging custom duty on second hand cars depending on the year-model a car manufactured.

“It is worrisome that government put huge duty on second cars importation, if you buy a car over eight years you pay too much duty”, Sitima complained.

He further appealed to government to revise custom duty citing that heavy charges have negatively affected success of their business.

“We will continue to serve our customers but they must also understand us because it not problem of our side to increase prices of our cars.

“Our concern maybe if government can consider with these second hand cars from Japan by putting fair duty maybe at least we can save a lot in our business”, he appealed.

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