You are currently viewing 60,000+ vehicles missing under Zimbabwe’s Temporary Import Scheme

60,000+ vehicles missing under Zimbabwe’s Temporary Import Scheme

HARARE – Over 60,000 vehicles that entered Zimbabwe’s borders on the pretext of temporary import permits since 2013 remain unaccounted for, raising serious concerns about the Zimbabwe Revenue Authority’s (ZIMRA) ability to track and manage imports.

This comes as ZIMRA is under intense scrutiny following revelations from the Auditor-General’s report for the financial year ended December 31, 2023.

The report highlights significant issues, including unaccounted temporary import vehicles and other governance lapses.

According to the Auditor-General, ZIMRA had issued 40,985 electronic temporary import permits (TIPs) and 19,719 manual TIPs for vehicles that were supposed to enter the country temporarily. However, as of December 31, 2023, there was no evidence that these vehicles had exited the country, raising concerns about potential localization without proper duty payments.

“Some of the entries date back to the year 2013.I could not ascertain whether the vehicles had exited the country or may have been localized as they remained not acquitted,” the Auditor-General stated. “The extent of duty payable in case the vehicles were localized is also unclear.”

In addition to the unaccounted TIPs, ZIMRA’s financial statements received a Qualified Opinion due to several discrepancies. One key issue was the non-compliance with International Financial Reporting Standard (IFRS) 13 – “Fair Value Measurement.” The report noted that ZIMRA disclosed property, plant, and equipment valued at ZWL$563 billion based on a desktop valuation, which did not include independent physical verification.

“The valuer’s assumptions were based on representations by management and not independent physical verification of the assets,” the report said. “As a result, the fair values did not meet the requirements of IFRS 13.”

The Auditor-General also highlighted other significant issues, including ZIMRA’s inability to allocate ZWL$101.54 billion in deposits due to insufficient client payment details, resulting in some clients accumulating penalties and interest for outstanding amounts. Additionally, ZIMRA had unacquitted Removal in Transit (RIT) entries with potential duty amounting to ZWL$7.1 million, some dating back to 2015.

In response to the findings, ZIMRA management acknowledged the issues and outlined steps to address them. “Management is in constant engagement with clients and banks to clear the unclassified receipts,” ZIMRA stated. “We are also working on several projects to automate current manual processes and improve compliance.”

Furthermore, ZIMRA reported progress in addressing prior audit findings. “The acquittal rate for outstanding TIPs now stands at 96.05% for electronic TIPs and 87.21% for manual TIPs,” the report noted. “Outstanding TIPs for the period 2013-2017 have been significantly reduced.”

Despite these measures, the Auditor-General’s report underscores the need for ZIMRA to improve its governance and financial management practices to ensure better accountability and compliance with international standards.