Africa-Press – Lesotho. The Minister of Trade and Industry Hon. Thabiso Molapo has on Friday explained new regulations surrounding used cars dealership. The Minister indicated that in August 2020 the business licensing regulation was
gazetted, which set conditions for dealers of used motor vehicles – famously known as ‘imports’. Some of the conditions were as follows: the license was to
be renewed twice a year and the license fee was M150, 000 for every six months which means it was M300, 000 for 12 months, there was a quota of how many
vehicles each dealer may import in a year, the vehicles were to be less than 8 years old, the cars were to come with a certificate to indicate that they are
road worthy – issued in the country of export, the businesses are required to use Lesotho banks. “At that time there were complaints that the conditions are too strict and that the
license fee is too high. The Ministry was called on to review these conditions. We invited those who were complaining and the association of used car importers.
The ministry met the car importers association on the 16th December 2020. The ministry listened to them and the complaints raised in the media at that time.
At the end of the discussion, the association agreed that the license fee be set at M150, 000 per annum and in considerations of concerns by other members of the public and other enterprises the ministry revised the
conditions and amended to the 2020 regulations as published in September 2021,” he noted. Molapo also highlighted that today the conditions are as follows: the license fee for
Basotho enterprises with annual turnover of between M200, 000 and M5 million is M50, 000, the license fee of M150, 000 applies to large enterprises of turnover
of over M5 million, the quota restriction, eight year restriction and the pre-inspections certificates have been removed after the ministry amended the
regulations but the dealers must still bank with the banks in Lesotho. “Lesotho is a member of eastern and southern Africa Anti money laundering group and it has an obligation to combat money
laundering and terrorist financing activities in the country. The motor dealer industry has been identified as a high activity for money laundering and
terrorist financing and the Ministry of Trade and Industry is responsible for monitoring this industry to combat activities of money laundering and terrorist financing,” said the Minister.
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