Finance Minister Reconsiders Car Import Ban

The government is reevaluating a ban on importing vehicles over 12 years old after the finance minister acknowledged it may have increased costs without achieving its goals. Minister Ericah Shafudah explained that the policy was initially introduced due to concerns from local dealers about the impact of older vehicles on businesses. However, she noted that the policy did not effectively stop older vehicles from entering the market. The minister also highlighted that many import regulations were created before the rise of online shopping and small-scale import businesses. Importers have reported issues with inconsistent vehicle valuations at border posts, leading to higher duties than expected. Some small businesses rely on older vehicles, but current rules require them to be registered in Botswana first. Operators have expressed concerns about the financial burden of customs duties and taxes on their businesses. A proposed solution includes a fixed valuation system for imported vehicles. Delays in addressing these issues could lead to the closure of some small businesses.

The policy's impact on small businesses and import costs highlights the need for regulatory reform to support economic growth.