Vehicle importers should be aware that they are classified into two categories, namely those carrying passengers and those transporting goods. In the passenger category, there are also two sub-categories: less than 10 passengers (saloons and station wagons) and more than 10 passengers (e.g. minibuses and buses).

Things to consider when calculating import taxes

If you are used to importing cars in Malawi, you will not be surprised by this information. Therefore, in order to calculate the charges for salons and parking cars, certain aspects of the vehicle must be considered as:

  • year of manufacture
  • the size of the engine

 

It should be remembered that a larger engine or a very old vehicle would pay higher excise duties. The table below illustrates the different rates applicable according to age and engine power:

Engine power

Vehicle Age

Different Import Rates

Customs duties

Excise duties

VAT

1000 CC

Less than 8 years

25%

0%

16,5%

 

8 and 12 years

25%

30%

16,5%

 

More than 12 years

25%

60%

16,5%

1500 CC - 1499CC

Less than 8 years

25%

15%

16,5%

 

8 and 12 years

25%

45%

16,5%

 

More than 12 years

25%

75%

16,5%

2000 CC - 2499CC

Less than 8 years

25%

35%

16,5%

 

8 and 12 years

25%

60%

16,5%

 

More than 12 years

25%

90%

16,5%

2500 CC - 2999CC

Less than 8 years

25%

45%

16,5%

 

8 and 12 years

25%

70%

16,5%

 

More than 12 years

25%

100%

16,5%

More than 3000CC

Less than 8 years

25%

55%

16,5%

 

8 and 12 years

25%

80%

16,5%

 

More than 12 years

5%

110%

16,5%

 

Calculation of import taxes

The freight value of a vehicle must be taken into account when calculating these different import taxes. To find the value it is necessary to add four elements:

  • Cost (FOB)
  • Insurance
  • Freight Value
  • Shipping charges

 

All payments will be made in the currency of Malawi, which is the Kwacha. This will have to be done according to the exchange rate of the foreign currency at the time of payment of the duties. For a vehicle over 8 years and under 12 years  with an engine size of 1499 cc, you will have an import duty of 25%, import tax 30% and import VAT 16.5%. So for a freight value of 3 000 000 MK, the duties will be calculated as follows:

1. Import duty = 25/100 x 3 000 000 Mk = 750 000 K

2. Excise duty = 30/100 x 3 000 000 MK = 900 000K

3. Import VAT = 16.5 / 100 x 3,000,000 MK = 495,000k

Total right

750 000 KM + 900 000 KM + 495000 KM = 2 145 000 KM

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