Dear Editor,
So, once again there is a scandal at the GRA regarding the remission of duty on “luxury” vehicles. Is it any wonder that individuals will go to great lengths to avoid the ridiculously high import duties on most vehicles? When there is an unjust rate of taxation even generally law-abiding citizens will ‘work the system‘ to their advantage.
If that means cooing with politicians or civil servants just to get that ‘forbidden‘ 4×4, then so be it. Why should the elite, especially those elected to serve the people be the only ones to flaunt their status in society? Remember Pradoville? The name came about because of the number of government officials driving Prados. These days their preferences are the gas-guzzling Land Cruisers and Mercedes Benzes. Rich businesspeople will not be outdone by the politicians, so they connive and get the duty free letters for their own aggrandisement.
The solution is quite simple: lower the rate of duty on all vehicles, have the GRA monitor their registrations and have the registrants justify their assets against their income. Meanwhile collect revenue on the licence and fuel taxes. Some technocrats will argue that the country will lose revenue by lowering the import tax on luxury vehicles. Really? Get serious; they collect nothing now on those types of vehicles, it goes through other channels to people that wield the power. Nothing is collected by the GRA with import duties on luxury vehicles. Persons or companies that legitimately import through a duty free letter pay nothing while the others also pay next to nothing.
At least the lowering of the rate across the board earns the country some revenue and makes a car more affordable for those in the lower income bracket. What it doesn’t do is satisfy the god complex of those politicians and technocrats who issue the duty free letters for the status symbols.
Yours faithfully,
(Name and address provided)
