Buying a Vehicle from South Africa Is Cheaper Than Importing It from Asian Countries

EmaSwati importing vehicles from Asian countries such as Japan, and Singapore, among others, may end up paying up to 60% in taxation costs.

This was disclosed by Eswatini Revenue Service Communications Director, Vusi Dlamini in an interview with Eswatini TV’s, Kusile Breakfast Show.

Dlamini clarified that he was not advising or telling people where and which vehicles to purchase, but was simply stating that from a financial and tax perspective, it is advisable to buy a car in South Africa, or within the Southern African Customs Union (SACU) region.

“Purchasing a car or goods within SACU, or particularly South Africa only attracts VAT, while purchasing outside SACU attracts, Customs Duty costs, levies, as well as a number of complexities such as documentation. In our calculations, we have noted that those purchasing a vehicle outside SACU can pay close to 60% compared to 15% in VAT.”

He further noted that purchasing a vehicle in South Africa or within the SACU region is economically beneficial to the country.

“When emaSwati purchase vehicles and goods within the SACU region, the country tends to benefit more economically. This improves the prospect of receiving more from the SACU pool, as vehicles are value items and contribute significantly to the country.”

Dlamini’s assertion was also echoed by the Minister of Finance Neal Rijkenberg earlier this year when he stated that the reason the country received record SACU receipts was because of increased trade with South Africa and other countries within SACU.

This was particularly due to the banning of grey import vehicles. In actual fact, the Minister disclosed that the country’s percentage from the SACU pot has moved from 7% to 10.8%.

As it stands, vehicles that are allowed into the country are those that are not older than 15 years.

Levies on Grey Imported Vehicles

0-5 years- No levy

6-10 years- 3% levy

11- 15 years- 6% levy

The Communications Director further emphasized that even if emaSwati purchase grey import vehicles from South Africa, particularly Durban, they will still attract custom duties and levies, as well as complicated documentation.

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