KINGSTON — Minister of Finance and the Public Service, Hon. Audley Shaw has announced a reduction in the Common External Tariff (CET) on motor vehicles, as part of measures to stimulate the industry.
Opening the 2011/12 Budget Debate in the House of Representatives on April 28, Mr. Shaw informed that effective May 2, 2011, the CET applicable to motor cars, including Special Utility Vehicles (SUVs), is to be reduced from 40 per cent to 20 per cent.
“The CET on bikes with engine sizes below 300 cc and 600 cc will be reduced to 10 per cent and 20 per cent, respectively. The CET on all terrain vehicles will be reduced to 20 per cent, and the Cost Insurance and Freight value to which the current 20 per cent duty concession is applicable, will be increased from US$25,000 to US$35,000,” the Minister also said.
The Finance Minister informed that the General Consumption Tax (GCT) payable on second sale vehicles will be increased.
He also pointed out that the annual motor vehicle licensing fees will be increased by $1,000, including motor bikes. This is applicable to fees which are currently below $12,000. The revenue yield is estimated at $180 million, Mr. Shaw said.
The Finance Minister’s presentation was delivered under the theme: ‘From Stabilisation to Growth’.
The Budget Debate will continue on Tuesday, May 3 with a contribution from Opposition spokesperson on Finance, Dr. Omar Davies.
By LATONYA LINTON, JIS Reporter