SI for implementation of vehicle loan scheme gazetted

Fidelis Munyoro Chief Court Reporter
Government has gazetted a Statutory Instrument 52 of 2019 for the implementation of a vehicle loan scheme for senior officials, replacing personal issue vehicle as part of an expenditure management strategy. The loan will be extended to principal directors or their equivalent, directors and deputy directors.

Principal directors are entitled to US$40 000, directors US$30 000 and deputy directors US$20 000.
The new regulations amend the Customs and Excise (General) Regulations, 2001, published in Statutory 154 of 2001 (The principal regulations), particularly Part X111 by insertion of a new section after Section 144(T) that will deal with rebate of duty on vehicle imported by specified serving public servants.

According to the new Section 144(U)(2), “with effect from January 2019, a rebate of duty shall be granted in respect of one vehicle imported or taken out of bond by serving senior public servant who is employed in the civil service and service commissions and is not under any disciplinary proceedings if such vehicles is (a) procured using a loan availed under the transport purchase fund through CMED (Pvt) Ltd or serving senior public servant’s own resources; and (b) intended solely for the private use of serving senior public servant and not for commercial or trade purposes.”

Clause 6 reads: “The maximum amounts to be availed to the serving senior public servants in terms of Subsection (2)(a) are to be as follows — principal directors and equivalent US$40 000, directors and equivalent US$30 000and deputy directors and equivalent US$20 000.”

Subsection (7) list the requirements for one to qualify for rebate under this section.
The requirements include, an application letter to be considered as a beneficiary in terms of the section, recommendation letter from the responsible permanent secretary confirming employment as stated in Subsections (2) and (3), a copy of the intended beneficiary serving public servant’s driver’s licence, a pro-forma invoice and a bill of landing for the vehicle being imported among others.

It has been established that Government was spending a lot of money maintaining its fleet, and is saddled with bills as well as dilapidated vehicles whose disposal would be prudent while new vehicles could be brought in cheaply.

source:the herald

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