Last Updated on Friday, 29 January 2016, 23:34 by Written By Denis Chabrol
Opposition Leader, Bharrat Jagdeo forecasts a hike in transportation due to the ban on used tyres and a restriction on the importation of used vehicles to eight years and under- effectively pushing up the cost of acquiring vehicles.
“If you have to buy new tyres, if you can’t get a new vehicle that is more than eight years old… I want to see how many ordinary people can afford the new vehicles now; then what do you expect, it will go up…. Transportation cost will go up,” Jagdeo, a former Finance Minister, told a news briefing moments after Finance Minister, Winston Jordan delivered the 2016 National Budget to the National Assembly Friday afternoon.
Jordan said persons importing vehicles under four years old and under 1500cc would no longer be required to pay the excise tax.
Those vehicles currently attract the excise tax at the rate of 30% and an effective tax rate of 118.7%. With this removal, the effective tax rate will be reduced to 68.2%,” said Jordan.
In addition there will be a reduction of the excise tax from 50% to 10% on motor vehicles under four years old, between 1500cc and under 2000cc. As a result, the effective tax rate of 152.3% will be reduced to 85%.
The Finance Minister further announced the restriction of the importation of used and/or re-conditioned vehicles to under 8 years old from the date of manufacture to the date of importation. This restriction shall be enforced from May 1, 2016.
He also gave notice of the Government’s intention ban the importation of used tyres and to reduce taxes on new tyres to encourage their use.
