Government Tightens Duty-Free Vehicle Importation Scheme for Civil Servants, Warns of Possible Ban
The Government has stepped up efforts to rein in abuse of the duty-free vehicle importation scheme for civil servants.
Authorities say the benefit, which was designed to assist long-serving civil servants, is now at risk of being scrapped altogether amid growing concern that the facility is being exploited for personal gain.
Also Read: ZACC And ZIMRA Seize Over 500 Cars From People Who Abused Civil Servants Motor Vehicle Rebate Scheme
Minister Signals Policy Shift
Speaking in Bulawayo, Minister of Public Service, Labour and Social Welfare Edgar Moyo indicated that new safeguards are being introduced to plug loopholes that have allowed abuse to flourish.
He said the Government, working alongside the Public Service Commission, is tightening oversight to ensure the scheme benefits only deserving individuals.
Moyo also warned that some civil servants were being manipulated by syndicates to import vehicles under false pretences.
Anti-Corruption Probe Uncovers Scale of Problem
Investigations by the Zimbabwe Anti Corruption Commission have exposed the extent of the problem, with over 500 vehicles valued at about US$2 million already recovered.
Officials believe the figure could rise as more cases are uncovered, pointing to a systematic abuse of the facility.
How the Scheme Is Being Exploited
The duty-free arrangement has reportedly been turned into a profit-making avenue, with some beneficiaries importing vehicles and quickly selling them, in violation of the rules.
Under Statutory Instrument 247 of 2023, qualifying civil servants must have at least 10 years of service and are required to keep the imported vehicle for five years. Selling the vehicle within that period attracts penalties, including payment of duty to the Zimbabwe Revenue Authority.
Benefit Could Be Withdrawn
Moyo warned that failure to restore discipline within the system could result in the complete withdrawal of the scheme.
He stressed that the facility was meant to support civil servants, not to be abused, adding that its survival depends on adherence to the rules.
Housing Projects Offer Alternative Support
Beyond transport benefits, the Government is also focusing on housing support for civil servants. One of the key initiatives is the Rangemore Presidential Housing Scheme, funded by the National Social Security Authority and administered by NBS Bank.
The programme has attracted significant interest, highlighting the growing demand for affordable housing among public workers.
Demand Outstrips Supply
Government has set aside 26,000 residential stands — 20,000 in Harare and 6,000 in Bulawayo — but demand continues to exceed supply.
Efforts are underway to service the stands and expand the programme to other regions, although officials say limited resources remain a challenge.
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