The government has been advised to reduce import duty on new vehicle to enable more middle-income earners afford them and save the country from being a dumping place for used cars.
"The import duty, other charges and Value Added Tax (VAT) that are slapped on new motor vehicles coming into the country have made it impossible for many Tanzanians to afford new cars," said Mr Laurian Martin, the General Manager of Diamond Motors.
The government has been advised to reduce import duty on new vehicle to enable more middle-income earners afford them and save the country from being a dumping place for used cars.
"The import duty, other charges and Value Added Tax (VAT) that are slapped on new motor vehicles coming into the country have made it impossible for many Tanzanians to afford new cars," said Mr Laurian Martin, the General Manager of Diamond Motors.
Diamond Motors, are Mitsubishi appointed dealer in Tanzania. Mr Martin made the call at the weekend in Dar es Salaam as he was bidding farewell to a South African couple, Mr and Mrs Graham Vaas, who were on a three-month tour of 11 Southern and Eastern African countries by using Mitsubishi Pajero Sports.
He said the industry is flooded with second hand vehicles, which account for 70 per cent of all sales in the country, adding that this was impacting negatively on the Tanzanian economy through high fuel costs, frequent vehicle maintenance and environmental pollution.
Mr Martin said increased sales of brand new vehicles will further save the exchequer from spending the much needed FOREX for procurement of spare parts for repairs of used vehicles and fuel.
"Tanzanians need to consider the total cost of ownership when looking to purchase vehicles for any purpose."
The total cost of ownership among other things, covers the fuel cost and maintenance cost," he said.
According to Mr Martin, a new Mitsubishi Pajero offers the lowest fuel consumption per km, has a low maintenance cost especially on spare parts, as well as a long service interval.
He urged Tanzanians to seek advises from dealers, especially on the total cost of operation of the vehicle they choose to buy before procuring them.
According to Mr Martin, the major factor driving the total cost of ownership is the acquisition cost, interest, the fuel cost, maintenance cost and the resale value.
On average, the acquisition cost is only 25 per cent whereas the rest covers 75 per cent, he said.
"However, there is a huge comparison in fuel costs between the new and used cars."
" Whereas a new one will give you 11kms on a liter of fuel, for a similar amount of a similar used vehicle you will travel between 4km to 5kmÉ"
"Besides, so many valuable hours are lost through repair work, something few Tanzanians appreciate," added Mr. Martin, whose company has been licensed to distribute the Mitsubishi range of vehicles in Tanzania.
Speaking during the occasion, Mr Vaas, a retired hotelier from South Africa, said the government should look at the motor vehicle industry and make it more relevant to the country's development and employment needs.
He said despite travelling over some of the roughest terrain in Africa, his Mitsubishi Pajero Sports did not have any mechanical problem other than replacing the air filter to prevent dust chocking the engine.
"My vehicle was due for service after 10,000 km, which happened to be in Tanzania. That is why on advice from Mitsubishi South Africa, I came to Diamond Motors who are the approved dealers," he said.
When asked about the service he received at Diamond Motors, Mr. Vaas said: "Very exceptional, accommodating, service of the highest order.
We are now very well prepared for the return journey, which gives me confidence." While in Tanzania, he visited the Serengeti National Park to witness the annual migration of Wildebeests the Ngorongoro Crater, Ruaha National Park and Lake Tanganyika among other tourist attractions.
In order to attract more international tourists and encourage domestic tourism, Mr Vaas advised the government to improve the roads and reduce park entry fees, which he said, 'are very steep.'
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