Rechargeable Batteries To Be Exempt From GCT
By: , March 22, 2022
Photo: Rudranath Fraser
Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, closes the 2022/23 Budget Debate in the House of Representatives on Tuesday (March 22).The Full Story
The Ministry of Finance and the Public Service (MOFPS) has obtained Cabinet’s approval to exempt lithium-ion batteries from General Consumption Tax (GCT).
This is to be implemented in the first quarter of Financial Year 2022/2023, which begins April 1st.
Portfolio Minister, Dr. the Hon. Nigel Clarke, made the announcement as he closed the 2022/23 Budget Debate in the House of Representatives on Tuesday (March 22).
He noted that in keeping with the thrust of the National Energy Policy, the MOFPS has been updating its strategy to encourage the use of energy-efficient technologies.
“From as early as 2013, the MOFPS incentivised the use of selected energy-efficient technologies by suspending the Common External Tariff (CET) and granting GCT exemption on the importation of such items,” Dr. Clarke said.
“We recognise that lithium-ion batteries are rechargeable batteries that use lithium-ions as the primary component of its electrolyte, commonly used for portable electronics and electric vehicles. Their popularity has been growing as an energy-storage technology, which should help to reduce the cost associated with the generation of electricity,” he added.
Dr. Clarke said the Ministry has already provided relief of the CET on such batteries and now believes the time is right to exempt these batteries from GCT.