Sunday, October 31, 2010

(SARS) has frozen the imports of Japanese cars from Durban to Botswana

South Africa Revenue Services (SARS) has frozen the imports of Japanese cars from Durban to Botswana since last week Thursday, in what some say is part of the taxman's crackdown on the largely Indian owned 'fong-kong' dealers there who have been dodging tax.

Others say the freezing of the import cars to Botswana has been on the cards 
after South Africa froze the sale of cars to Namibia and Zambia last year. Those 
who say discontinuation of selling of the imports to Botswana was expected 
point to rumours that were rife in December when some Durban car dealers 
contemplated relocating to Namibian shores to flee the crack-down by the 
South African government.
There has also been talk that the South African government has been under
 pressure from car manufacturers there who complain that the Japanese 
imports are killing their business in the region.

The Japanese cars are not sold in South Africa but South Africans can buy them 

in Gaborone where there are more than 40 dealers and later drive them in their 
country with South African number plates, it has been realised. Whatever, 
the Indian owned garages dealing in imported cars are said to be now stuck 
with stock of cars they are unable to sell because of the latest stance by
 the South African tax-man. On the other hand local car dealers have been 
cashing in on the jittery situation in Durban to hike prices of the imported 
vehicles as they will no longer be competing with hundreds of middlemen 
who traditionally drive between South Africa and Botswana to get 
their clients cars. Car dealers around Mogoditshane, the hub of the imported 
cars, are painting a gloomy picture of the situation with leading Durban 
dealers in Japanese imports reported to have been closed down by the 
taxman in recent weeks, while the remaining ones cannot operate after they
 were refused clearance certificates by the South African revenue services,
 making it impossible for Botswana car buyers to continue acquiring cars from Durban.

The freezing of Japanese cars to Botswana comes two years since clearance 

certificates to Zambia and Namibia were discontinued by the South African 
Revenue Services (SARS). Since then, Namibians and Zambians buying 
Japanese imports have been beating the system by using Botswana where their 
cars would be cleared before being driven to their final destinations in Zambia 
and Namibia, Mmegi has found out.


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