The Government of St. Vincent and the Grenadines has implemented a new system for calculating the surcharge on imported vehicles, with the introduction of lower rates on new and imported vehicles.
Minister of Finance, Camillo Gonsalves, while delivering his budget address, said “while the old regime considered only two factors, age of vehicle and engine size; this new regime, which came into effect on January 1, considers four factors. A base surcharge of 1 thousand dollars, the age of the vehicle, the engine size factor and the CIF factor.”
“Previously, vehicles cost less to purchase overseas and more to clear at customs. We have since then reversed this by reducing the duties on the new vehicles. Now the vehicles cost a little bit more to purchase because they are newer, but the new vehicles will cost significantly less to clear at customs,” Gonsalves said.
The Finance Minister also said that the rates implemented in SVG, are among the lowest in Caricom. A bill to amend the customs and duties was passed in Parliament in November of 2022.
He added that vehicles with documentation, indicating that they were purchased before November 15, 2022, will be assessed under the new system.
The Government of St. Vincent and the Grenadines said “it hopes this new system, will encourage consumers to purchase greener more energy efficient vehicles, which would potentially last longer.”