Admins Note: Fong Kong Debate We have waited for RTSA to say something about these second hand vehicles that basically form 90% of our motor vehicle population in the country. We have seen back and forth what people have said about the second hand cars. This was led by The President Mr Michael Sata who chastised a Deputy Minister for going to officiate at HND. In a way there is a point, we cannot certainly glorify second hand things, what would have made a lot of sense would have been to instead encourage the setting up of vehicle assembly plants in Zambia and accord such the necessary incentives for them to flourish. The principle however has been lost now. A new context has emerged where self-appointed experts have emerged to condemn anything second hand. Some have even further gone to disparage these second hand vehicles that they do not add value to the economy. We believe they are wrong. One just needs to peep outside their gate and see all the blue buses and point at one that is brand new, yet this could be the biggest single contributor to the transport sector. Just look at the bulk cargo movers, FRA depends on transporters who mostly use second hand trucks to move their crop to the main storages. One just needs to get to NCZ and look at the trucks parked outside, brand new? Stand outside any hardware shop, check what transport is available, there is a chance it will be a second hand truck. What is our point, the point is second hand vehicles are truly contributing to the economy contrary to what Hon Andrew Kashita wants us to believe. Here are a few facts. (i) There is no economy in the world without brand second hand vehicles. where all vehicles being deployed are brand new. (ii) We cannot give our limited infrastructure as the reason for banning importation of motor vehicles. (iii) The call for banning of second hand cars is not being done in good faith due to business interests. (iv) Some of these so called second hand vehicles are in very good condition. (v) The Army, ZAF and ZNS all buy second hand vehicles. (vi) All our minibuses that operate inter suburb routes are second hand. (vii) RTSA always carryout physical inspection of vehicles and any vehicle not fit to be on our roads is declared as such. Our tax regime; you bring in a car in reasonable condition they charge you an arm and leg, bring in an old car, you get away with a slap on the hand. Here are a few things Government could consider; (i) Interest rates related to cost of doing business in Zambia, corporate tax in Singapore is 17%, compare that with 40% in Zambia (ii) change the tax regime, tax older cars more and newer cars less (iii) Encourage banks especially DBZ to be go into venture financing, startups etc and really make them viable businesses, DBZ could be what could be the equivalent of a sovereign wealth fund (SWF) manager, who will be investing in Zambian companies. (iii) Individuals in full time employment or with a steady source of income can be given concessional rates, imagine a car costing ZMW250,000, someone pays nothing less than ZMW6,000 per month, how many Zambians can afford that kind of money (iv) Revive an efficient and effective public transport system. The admin is off to negotiate for a USD350 car before in it is bought.
Posted on: Wed, 13 Nov 2013 13:03:18 +0000
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