The Ministry of Finance has confirmed that the proposed increase of taxes and import duty on certain private motor cars—namely, certain smaller engine CNG, electric and hybrid cars—which were announced in the 2021 Budget Statement, will now be applicable from January 1st, 2021.
An official statement from the Ministry reports that the decision to postpone applying the new measures was taken at the last week’s Cabinet meeting.
“This means that all private motor cars that are imported and cleared through Customs on or before December 31st, 2020 will therefore be taxed and/or be subject to import duty at existing rates and/or enjoy the existing tax and import duty exemptions,” the release from the Ministry explains.
In addition, new rates of tax and import duty on the cars in question will take effect on January 1st, 2021.
The Ministry reports as well that Cabinet also decided that the reduction in the permissible age of imported foreign used cars to three (3) years, will take effect in January 2021.