Vincentians are expected to pay lower rates on imported vehicles. Parliament passed the Bill to amend the Customs Duties on Monday, November 21, 2022. Chapter 423, section 6 of the Bill allows for lower rates on the importation of newer vehicles, hybrids, electrical vehicles and vehicles with smaller engines.
This regime took effect on November 15, 2022. “Your excise tax and your import duty, generally coming down across the board… those reductions… are what the importer will enjoy between now and the end of the year because we are not putting in the new surtax regime, the new formula by which we calculate the value of cars until January 1st,” Minister of Finance Hon. Camillo Gonsalves said.
A similar regime comes into effect on January 1, 2023. In addition to the engine size and age of the vehicle to determine the amount payable on motor vehicles imported, there will be a baseline surtax of one thousand dollars and the cost the consumer paid for the vehicle or the CIF will be taken into consideration.
“The formula is a simple one, there will be your base surtax multiplied by an age factor multiplied by your engine size factor, multiplied by your CIF factor,” Gonsalves explained.
The Finance Minister said the “new tax regime for taxing motor vehicle imports lowers the tax burden and delivers tangible benefits to the importer.” Gonsalves added that the new regime also encourages the consumer to purchase greener, more energy efficient vehicles which would potentially last longer.
