NEW IMPORT TAX REGIME FOR MOTOR VEHICLES
In November 2022, Government introduced a new tax regime for the importation for motor vehicles. The new import tax regime lowers Import Duty and Excise Tax rates on certain classes of motor vehicles and modified the motor vehicle Surcharge Tax.
The lower Import Duty and Excise Tax came into effect on January Pt 2023. The revised motor vehicle Surcharge Tax will come into effect on April 1st 2023.
The main objectives of the new regime are to reduce import taxes on motor vehicles whilst encouraging citizens to choose newer, more efficient, motor vehicles with smaller engines (below 1,600cc), hybrid and electric.
A comparison of the old and new lower rates is summarized below.
The revised motor vehicle Surcharge is calculated as a multiple of four (4) factors for each class of motor vehicle as follows:
The new lower rates for Import Duty and Excise Tax are now in effect and are applicable to all motor vehicle imports. However, the old motor vehicle Surcharge will apply to all in-transit motor vehicles ordered and paid for before December 1st 2022. This transitionary arrangement will end on March 31st 2023.
The public is asked to take note that a public awareness campaign will be launched in the coming days to sensitize citizens on the benefits of the new regime, provide information on the revised surtax, the lower duties and excise tax, and on how to make buying decisions to derive better value from money from your motor vehicle purchase.
Meanwhile the Duty Calculator is also available online
The public is encouraged to use it to inform their choice of motor vehicle.
For more information please contact the Customs and Excise Department at: Phone: 784-457-2421 / 457-2711 Cellular Phone: 784-532-8399
