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
