Tax cuts in transport sector will spur growth, say experts

The move by the government to reduce or scrap taxes on selected categories of motor vehicles will encourage economic activity and spur growth, Herbert Gatsinzi, the Ernst & Young director for tax advisory services, has said.   The government reduced common external tariffs on motor vehicles for transport of goods with between five tonnes and 20 tonnes capacity to 10 per cent, down from 25 per cent in the 2013/14 financial year budget.