The ban imposed on used vehicles of 12 years and older, introduced last fiscal year, appears to have had an adverse impact on the importation of construction vehicles.
And, Minister of Finance, Camillo Gonsalves further said in his budget address on Monday that
given that the value of heavy-duty trucks is usually high, the Government will grant further duty-free concessions on dump trucks 3 tonnes and above, and other construction-type vehicles, affected by the ban, from 50 per cent to up to 60 per cent.
He said this measure will result in a revenue loss of approximately EC$250,000.
Further, the government shall reduce the excise tax from 60% to 55% on trucks used in the construction sector under specific tariff headings (namely, 8704.22.10, 8704.22.90, 8704.23.10, 8704.23.90, 8704.32.10 and 8704.32.90).
The minister said these two measures will provide a useful incentive for increased private sector investment in the construction sector to complement the Government’s public sector investment programme.
“With the approaching construction boom across St. Vincent and the Grenadines, we encourage contractors to invest in durable, high-quality trucks and machinery.
“In a related measure, the government wishes to signal its intention to adjust the taxes and duties related to electric and hybrid vehicles in the near future, subject to technical adjustments in the way that customs authorities classify these vehicles. The intent will be to incentivise the importation of newer, cleaner automobiles,” Gonsalves said.