Fuel Efficient Commercial Vehicles Exempt From Taxes

Imported vehicles that are electric, hybrid, or use Compressed Natural Gas will still be exempt from taxes, once they are for commercial use. During debate on the Finance Bill 2020 in the Senate on Tuesday, Finance Minister, Colm Imbert clarified that a change was made to the adjustments to the Motor Vehicle and Road Traffic Act as it relates to Motor Vehicle Tax, Value Added Tax, and Customs Duties, as announced in the 2021 Budget. The tax exemptions will apply to all commercial vehicles that use CNG, electric vehicles with an engine size of 179 kilowatts, and hybrid vehicles with an engine size of not more than 1,999 cubic centimetres. The tax exemptions will also apply to imported used, or 'roll on-roll off' vehicles, once they are for commercial use, and not more than three years old. Minister Imbert also announced new rates for taxes on new private motor vehicles. He said, however, the rates were the lowest on any private vehicles at this time. Imported used, or 'roll on-roll off' vehicles that use CNG, electric vehicles with an engine size of 159 kilowatts, and hybrid vehicles with an engine size of 1,599 ccs, which are for private use, will carry a tax of three dollars per cubic centimetre, and 20% Customs duty. Minister Imbert said this is 5% lower than taxes on all private vehicles.