In his presentation of the National 2018 Budget, Minister of Finance, Winston Jordan, has proposed that importers and those purchasing overland transportation vehicles can benefit from a number of measures recommended by the government.
Those measures are as follows:
The granting of free vehicle licences to motor buses and motor vehicles operating in Regions One, Seven Eight and Nine.
The removal of Value Added Tax (VAT) on vehicles less than four years old, transporting more than 21 persons.
The removal of the excise tax flat rate of US$6,900, replacing it with 14 percent VAT on vehicles four years and older, carrying between 22-29 persons.
The reduction in the rate of excise tax on the importation of overland transportation used for tourism purposes in Regions One, Seven, Eight and Nine. This concession will be applicable to vehicles between 2,000 and 4,000 cc which are used exclusively in the tourism sector for the transport of persons by incorporated entities that have been operating in those regions for at least five years.
For vehicles 2,000 to under 3,000 cc which are less than four years, the excise tax would be slashed from 110 percent to zero, for vehicles over 3,000 cc to 4,000 cc and are less than four years the excise tax would be reduced from 140 percent to zero.
These measures are expected to benefit Hinterland economies and community-based tourism operators, as part the government efforts to enhance economic growth. Minister of Telecommunications Catherine Hughes, who previously had responsibility for the tourism sector welcomed these measures.
“I know the folks in the tourism sector, will finally get some progress in terms of those duty-free concessions on vehicles that they need to transport tourists in out tourism-related areas.” Minister Hughes pointed out. (DPI)