2nd HAND CAR REGISTRATION AMNESTY ENDS

The amnesty period for the registration of imported 2^nd hand vehicles aimed at encouraging local motorists to comply voluntarily ended yesterday.

During the three month amnesty period which started on the 1^st April, motorists were given a 20% discount on the taxable value of their cars. They were also charged VAT on the current value of their vehicles and had penalties waivered to facilitate smooth registration. The above discounts translated into savings which were worth thousands of Maloti for people who took advantage of the amnesty period.

A press statement from the Lesotho Revenue Authority (LRA) posits that as of today, the 1^st of July, motorists who have not yet come forward to register will now forfeit benefits as follows; first, they will now be charged 100% of the taxable value of their vehicles. Second, they will be charged VAT based on the original price of the vehicle unless they have sufficient proof of the value of their vehicles at the time of importation. They also face the following penalties from both the Customs and VAT laws; A 3% penalty per month on the taxable value of the vehicle will be imposed. LRA further warns that Customs and Excise department now has powers to impound such vehicles as they have not been declared when they entered the ports of entry into the country. As a matter of fact, these vehicles are deemed as illegal imports that have been smuggled into the country. Therefore their owners are liable for prosecution.

LRA had encouraged all motorists who had not yet made any attempt to be up to speed and pronounce themselves as the laws will certainly be enforced. It is also apparent that the deadline will not be extended.

01 July  2004