Zimbabwe Cuts Customs Duty on Electric Vehicles to 25%

The Zimbabwe government has made a significant move to promote eco-friendly transportation by reducing customs duty on electric vehicles (EVs) from 40% to 25%. This change, set to take effect on January 1, 2025, is part of a broader strategy to encourage the adoption of cleaner, more sustainable vehicles across the country.

Finance Minister Mthuli Ncube announced the policy during the recent national budget presentation. “Mr. Speaker Sir, electric motor vehicles attract customs duty of 40%, while electric tractors attract duty at 0%,” he said.

“Cognisant of the need to promote the use of eco-friendly vehicles, which will result in reduced carbon emissions, I propose to reduce customs duty on electric motor vehicles from 40% to 25%, with effect from January 1, 2025.”

Hybrid vehicles will not benefit from the duty reduction, as the government is specifically focusing on fully electric vehicles to maximize environmental benefits.

To further incentivize EV adoption, the government will also introduce a rebate on customs duty for equipment used to establish solar-powered charging stations.

“In order to incentivize the use of electric vehicles, I propose to extend a rebate of duty on equipment used for setting up electric vehicle solar-powered charging stations, imported by approved operators, with effect from January 1, 2025,” Ncube added.