The Government of Guyana has announced sweeping changes in the taxes associated with the importation of motor vehicles that it hopes will trigger better care for the environment.
Finance Minister Winston Jordan on Friday announced that the government will remove the excise tax on motor vehicles that are under four years old and which would be 1500cc and lower in engine size.
He said these vehicles currently attract excise tax at the rate of 30% and an effective tax rate of 118.7%. With this removal, the effective tax rate will be reduced to 68.2%.
Minister Jordan also announced the reduction of excise tax from 50% to 10% on motor vehicles under four years old, between 1500cc and under 2000cc.
“As a result, the effective tax rate of 152.3% will be reduced to 85%”, he told the National Assembly.
The government also intends to restrict the importation of used and/or re-conditioned vehicles to under 8 years old from the date of manufacture to the date of importation.
The restriction will be enforced from May 1, 2016.
And the administration also intends to ban the importation of used tyres and to reduce taxes on new tyres to encourage their use.
He said the ban will be put into effect as soon as some procedural hurdles are cleared.