Government Lowers Duty on Electric Vehicles

• The import duty on electric vehicles has been reduced from 30% to 10%, and purchasers of those vehicles will not have to pay licence fees over the next five years. 
• The House of Representatives approved the Customs Tariff (Revision) (Amendment) (No. 2), Resolution, 2022, and the Road Traffic (Licence Duties) Order, 2022, and Resolution on Tuesday (July 19) to give effect to the measures.
• Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, advised that the lower duty rates and the elimination of the licence fee requirement apply to electric vehicles that are three years old or less at the time of importation.
• It was noted that duties on motor vehicles are a major source of government revenue, with earnings of about $30Bn to $40Bn, and so the reduction of duties for electric vehicles had to be considered very carefully, seeing the government could not afford to completely cannibalize all of that revenue.
• These measures support the country’s transition from a high dependence on petroleum for motor vehicles by making it more affordable for Jamaicans to acquire electric vehicles. This will also support the government’s aim to achieve 60% reduction in Jamaica’s carbon dioxide emissions by 2030.

(Source: JIS News)