As early as October 10 or in November, a bill will be introduced to Parliament to amend the country’s tariff system, including those for motor vehicles.
This was announced by Finance Minister Camilo Gonsalves on Thursday during a press conference.
The Ministry of Finance officials thought it would be best to incorporate the changes in duties related to automobiles into a broader revision and reform of tariffs on other things. The draft bill reviewing the tariff structure for motor vehicles was reviewed months ago.
The way in which vehicles are assessed will be changed, so there will be a significant reduction in duties. We have reformulated the way the port will judge the price of vehicles.
In the current system, vehicles are only assessed based on their age and engine size. For new or newer cars, there will be a significant reduction in duties due to the addition of other factors.
As a result of the duty reduction, “fuel-efficient vehicles, hybrids, and electric cars will also get a significant price reduction.
Gonsalves said there is a cap on cars that are 12 years old right now, but most people are bringing cars that are a little newer than the cutoff date.
In the event that you are still able to get 20,000 dollars, maybe instead of purchasing a 12-year-old vehicle, you will now be able to buy an 8-year-old vehicle for the same price, he said, because the taxes are going to be adjusted.
The hope is that, when new vehicle taxes are lowered, more wealthy people will buy new vehicles, so that we don’t lose too much money overall. We’re reducing on top, and that will help the bottom as well, Gonsalves said.
