Inside how Fong Kong dealers deny govt of millions through tax evasion :: Mmegi Online

Pre-owned car imports, mostly from mostly Japan and Singapore, have become a hit in Botswana over the past decade. These affordable motor vehicles, popularly referred to as Fong Kongs, have come to the rescue of Batswana who could otherwise not afford brand new cars.

They are used for personal travels, public transport, as well as in business. One would expect that as these cars increase on the roads, the country would get more money from business taxes. However, Mmegi investigations have revealed that even though the government cashes in, it receives less than what could be collected.

The Botswana Unified Revenue Services (BURS) has stated in its past annual reports that it was losing millions of Pula it could have gained from the importation of second-hand motor vehicles from Value Added Tax (VAT), customs duty and Value Added Duty. The organisation lamented that second-hand car dealers undervalue the cars to the disadvantage of the government.

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