The government has announced a one-time duty reduction on all new tyres imported into St. Vincent and the Grenadines.
On Monday, Minister of Finance Camillo Gonsalves provided the details of the announcement that Prime Minister Ralph Gonsalves made in his Independence Address on Oct. 27.
Delivering the budget address, the finance minister said that between Jan. 1 and June 30 all new tyres imported into SVG will see a 50%duty reduction.
“Before this measure, motorcycle and industrial vehicle tyres attracted a 5% duty, tyres for buses and lorries were charged 15%, and motor car tyres 25%,” he said.
“After receiving reports from multiple sources concerning the low quality of some of the used tyres on the market, we hope that this measure will incentivise an investment in safer, longer-lasting tyres, that are better-suited to our curvy, mountainous and often rain-slicked roads,” the finance minister said.
“We also remind those in the business of road transportation — from car rental agencies to taxis to minibuses — of their legal responsibilities to their customers regarding the safety and roadworthiness of their vehicles.”
The EC$1.6 billion budget was approved on Wednesday after a premature end to the debate.