4 September 2022
Zim GBC News
Innocent Sibonginkosi Ncube
The Zimbabwean dollar continues to prove reality in the laws of business economics.
The local currency is being shunned by its own government.
The Zimbabwe public, has no choice but continues to use by ‘force’ the “bond notes”, as the local currency is widely referred to.
Given a choice, no sane person would be trading in the Zimbabwe dollar.
As proof that the local currency has lost all its economic trading strength, the Minister of Transport and Infrastructural Development Felix Mhona, has gazzeted vehicle licence fees in the United States dollars.
However, vehicle owners can pay in the weakened local currency at the interbank exchange rate of the day of purchase.
The newly gazetted Statutory Instrument 156 of 2022, contains the 25th amendment to the Vehicle Registration and Licensing Regulations which replaces the old Zimbabwe schedules with new schedules denominated in US dollars.
To save face, the amendment makes it clear that the fees listed “may be payable in local currency (Zimbabwe dollars) for locally registered vehicles at the ruling exchange rate of the day”.
The new fees came into effect the day they were gazetted.
The new tariffs have done away with discount to those who pay for longer terms but increased the number of months a motorist can pay for the license.
For instance, vehicle owners have been given the options of: 4 months, 6 months, 8 months, 10 months and 12 months.
The tariffs are identical per month despite the length of license cover desired, thereby removing discount or premium if longer or shorter periods are chosen.
The downward spiraling Zimbabwe dollar has seen many government departments shift payment of fees to US dollar with the same provision that the US dollar fees can be converted on the day of payment to local currency at the official rate, which has now been set at the inter-bank rate for all Government transactions.
This rate changes every business day unlike the Reserve Bank rate which changed every Tuesday.
The new vehicle regulations list also the fees for first time registrations and that for change of ownership, with much higher fees when this involves changing the number plates.
First time registration fees for a vehicle is pegged at US$80, and for a motor cycle or a trailer US$70.
Change of ownership with new plates is now US$95 for a vehicle and US$85 for a motorcycle or trailer and US$15 for all vehicles, motorcycles or trailers if the old number plates are retained.
Replacement of lost plates comes expensive at US$85 with duplicate third plate pegged at US$15. Personalised number plates are also expensive at US$1 200. Garage plates or licences are US$50 and a temporary identity card is US$35.
As the Zimbabwe dollar continues to tumble, trade has converted the medium of exchange to the much stable US dollar, thus government departments are pricing fees in that currency.
The issuance of E-Passport were gazzeted at US$120 and most recent almost all government schools have tagged fees in the green pack. This has seen a sharp increase in the school fees for local payments as schools are set to open next Tuesday.
In the meantime government employees and some employment councils still continue to pay salaries in the useless local currency while failing to accept the glaring truth, the prevailing salaries have rendered many workers poor.
Zim GBC News