LESOTHO JOINS ESWATINI, STOPS ‘DUBAIS’ IMPORT PERMITS

MBABANE – In a quest to improve its shares in the SACU, Lesotho has imposed a moratorium on the issuance of import permits for used motor vehicles coming from outside SACU countries. 

This is a similar move to what Eswatini did through a legal notice dated August 18, 2020, issued by government through the Ministry of Finance. 

In the notice, which is cited as the Used Motor Vehicle Import Permit Specification Notice of 2020, Government was communicating that a used motor vehicle requiring a permit shall not be older than seven years at the date of its purchase. 

Government also communicated that a levy of 6 per cent on Free-on-Board value shall only be imposed on every imported used motor vehicle that is four years to seven years old. 

In the memorandum dated September 15, Lesotho Government informed stakeholders that it had decided to impose a memorandum on the issuance of import permits for used motor vehicles, coming from outside SACU countries. 

Further, it informed stakeholders that government had also decided to impose a memorandum on the issuance of new trader’s licence for motor dealers. 

“The memorandum is effective from Tuesday, September 15, 2020 until further notice. Please inform relevant offices accordingly,” read the letter in part. 

An economist said both countries were taking a step in the right direction as there was a strong need for them to increase their SACU revenues by ensuring that imports were within the SACU trade area. 

However, she stated that the move was disadvantaging the average men who could only afford a cheap car. 

Initially, the rationale for import cars was to enable the average liSwati to own a car but that has a disadvantage on the other side as it was increasing the country’s imports outside of SACU, contracting its receipts from the union.

She said government needed to develop a programme that would still enable the average liSwati to own a car. 

“It is a good intervention from these countries but we need to have a discussion with South Africa as they have a vibrant automotive industry and they assemble cars. We need an alternative that will give an option to the citizens to still afford a car at cheaper prices,” she said.  

The Ministry of Finance through its mouthpiece, Setsabile Dlamini, previously explained to this publication that the country wanted to enhance its shares of SACU revenues. She said the more imports from within SACU, the more revenue the country gets in terms of SACU receipts. 

Worth mentioning is that the country is positioned 149 in the importation of vehicles according to the world’s top exports, which reported that the country in the 2018/19 period saw a decline of imports by 0.7 per cent as the vehicles imported were valued at E785  858 696. 

It is also worth mentioning that Members of Parliament are not on the same page with government on restricting the models of vehicles import car dealerships sell. 

Hosea MP Bacede Mabuza was quoted by this publication saying “If government claims not to be getting money from SACU, it should support the people who are bringing varying amounts through payments of tax.”

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