MUROWA DIAMONDS (PVT) LTD v ZRA & ANOR 2007 (2) ZLR 375 (H)

Flynote

Interpretation of statutes — meaning of words — primary and ordinary meaning of word — secondary meaning should not be used where primary meaning is clear

D Revenue and public finance — duty and value-added tax — payment of in foreign currency when certain goods imported — goods paid for with funds "obtained" from authorised dealer — resident of Zimbabwe exempt from paying duty in foreign currency

Headnote

The applicant imported motor vehicles, using funds from its foreign currency account to pay for them. The revenue authorities demanded that duty be paid in foreign currency, as the goods fell under the description of "luxury goods" in the Customs and Excise (Designation of Luxury Items) Notice, 2007 (SI 80A of 2007). The applicant argued that it was exempt in terms of s 3 of the Notice, which provides that "every resident of Zimbabwe who imports luxury items that were purchased using funds obtained otherwise than through an authorised dealer" must pay duty in foreign currency. The respondent argued that when a person uses foreign currency in his account, he is merely accessing those funds and is not "obtaining" the funds from an authorized dealer for the purposes of the Notice.

Held, that the applicant was a resident of Zimbabwe and the funds employed in the purchase of the vehicles in dispute were funds processed from a foreign currency account that it held with its commercial bank, an "authorised dealer" in terms of the Notice. The ordinary or every-day meaning of "to obtain" is "to come into possession of"; "to get" or "to acquire". The effect of replacing "obtain" with "get" would be that residents of Zimbabwe who "get" funds to import a luxury item, other than through an authorised dealer, are liable to pay duty and value-added tax in foreign currency. Those who "get" funds through an authorised dealer are exempt. Thus, those who have such funds processed through an authorised dealer, in whatever form is appropriate for the importation, are exempt from paying duty and tax in foreign currency. The exact natureof the process through which the funds are "got" is immaterial. Such funds may be got from funds already held to the credit of an account, they may be purchased from the bank or, where appropriate and acceptable, a line of credit may be extended to the importer through arrangements made by the authorised dealer. The material issue is not so much how the funds are accessed, but from whom such funds are got. The meaning that the respondents would have the court use for the word "obtain" is clearly a departure from its primary and ordinary meaning.