Lower rates on newer, imported vehicles is the intended outcome as Government implements a new regime in calculating the surcharge on imported vehicles.
In delivering his Budget address on Monday, Minister of Finance Hon. Camillo Gonsalves said while the old regime considered only two factors, age of vehicle and engine size; this new regime which came into effect on January 1, considers four factors- a base surcharge of one (1) thousand dollars, the age of the vehicle, the engine size factor and the CIF factor.
“Previously, vehicles cost less to purchase overseas and more to clear at customs. We have since then reversed this by reducing the duties on the newer vehicles. Now the vehicles cost a little bit more to purchase because they are newer, but the newer vehicles will cost significantly less to clear at customs,” Gonsalves said.
The finance minister also advised that the rates implemented are among the lowest in Caricom. Parliament passed the Bill to amend the Customs Duties in November 2022. “In short, all things being equal, the amount of money that you spent to buy, ship and clear a 12-year-old car in 2022, will get you an 8-year-old version of the same car in 2023,” Gonsalves explained.
Gonsalves added that “as such vehicles with documentation indicating they were purchased before November 15th 2022 will be assessed under the old regime.”
Government hopes the new regime encourages consumers to purchase greener, more energy efficient vehicles which would potentially last longer.
