JIS News

As of tomorrow (Sept. 10), automotive dealers will begin to benefit from a reduction in the Special Consumption Tax (SCT) on imports as the Government seeks to relieve the slump in the industry.
Making the announcement at today’s (Sept. 9) post-Cabinet press briefing at Jamaica House, Minister with Responsibility for Information and Telecommunications, Hon. Daryl Vaz, said that the motor vehicle stimulus package is expected to result in increased revenue overtime, and more tax compliance.
He noted that the move had become necessary because of the drop in motor vehicle sales. “With an industry with 60 per cent sales down, with the level of taxes and duties that the vehicles attract, it means that the revenues for the Government have been affected,” he pointed out.
Under the measure, cars and sport utility vehicles, which have cc (cubic centimeter) ratings of 1000 to 1600, and attracted a 10 per cent SCT, will not be charged. Those with cc ratings of 1600 to 2000 will pay five per cent, down from 25 per cent; vehicles with cc ratings of 2000 to 3000 (gasoline) and up to 3.2 (diesel), will attract a 15 per cent SCT, down from 35 per cent. Vehicles with cc ratings of over 3000 (gas) and 3.2 and over (diesel) will attract a 35 per cent SCT. CC is a standard rating for engine size.
Meanwhile, there will be no SCT applied to pick-ups under 1700 kilograms, while those of 1700 kilograms to 2200 kilograms will attract an SCT of 25 per cent, down from 45 per cent. Those 2200 kilogram and more, will attract a 75 per cent SCT, down from 110 per cent.
There is also some reprieve for persons in the Government service who may want to purchase motor vehicles. The 3000 (gas) and 3.2 (diesel) CC rating limitation that applied to vehicles acquired with the benefit of the Government’s 20 per cent concession, has been removed and duties will instead now be applicable to vehicles with Cost Insurance and Freight (CIF) of more than US$25,000.
“So, that will answer the calls by the various Government agencies that were clamouring for the removal of that as it restricted what they could purchase based on the CC rating,” Mr. Vaz said.
The adjustment will remain in effect until March 31, 2010, at which time they will be revised.
Below is the table with details of the stimulus package:

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