New tax on hybrid and fuel vehicles in 2018 Budget and what it means

[Brandname Motors]

Clarifying what was said about imported hybrid vehicles:

"Propose to remove all incentives currently available to passenger vehicles with engine sizes exceeding 1599cc.
The incentives will only now apply to CNG and hybrid vehicles with engines less than 1599cc."

To encourage the use of smaller, more fuel efficient vehicles, and to reduce the loss of foreign exchange from motor vehicle imports, I propose to increase by 25 percent the motor vehicle tax and customs duty on These measures will take effect from October 20th 2017.

However, there will be a moratorium up to December 31st 2017 for private passenger vehicles already in transit or already landed in Trinidad and Tobago."

What it actually means:
Prior to today, the government policy was that for five years they would offer an incentive to encourage the use of electric and hybrid vehicles. Those hybrid vehicles would be exempt from Motor Vehicle Tax (MVT), Customs Duty and VAT as long as the engine capacity did not exceed 2,000 cc.

What changed is that government considers the import of BMW X5 hybrid vehicles as luxury vehicles and blames the import of luxury vehicles on the loss of foreign exchange to the tune of over $400 Million US dollars on the import of luxury vehicles.
That's the thing with incentives. Risk takers are usually the early adopters. In this society as with many others, the risk takers and innovators usually risk more and earn more therefore those that earned more and ventured towards the import and use of the hybrid vehicles opted to go for the best vehicles they could afford which were the hybrid BMW X5 units. They would have paved the way for businesses and individuals to tool up their workshops and themselves with the training and tools to service and repair hybrid vehicles.

This five year incentive period was determined to be adequate for this transition. This would have also given the general population time to adopt the new vehicle technology especially seeing that the financially stronger members of the population took up the incentive and made the overall transition towards hybrid vehicles feel safer. In many cases they would have been the encouragement for technicians to acquire the requisite training and experience.

It appears that the Minister frowns on luxury purchases as per previous utterances and the statements made during this budget presentation stressing that luxury vehicles wasn't the intention of the incentive. This however was not expressed when the incentives were introduced. Nevertheless the Minister has sought to remove the incentives currently available on BMW X5 vehicles by limiting the hybrid incentives to vehicles below 1,599 cc. He further sought to penalize purchasers by imposing an increase in Customs Duty and Motor Vehicle tax by 25% above what previously obtained for non-hybrid vehicles.

The Customs Duty on vehicles between 1,599 but not exceeding 1,999 was 35% but Hybrids were exempt for five years. Now Hybrids that exceed 1,599 but do not exceed 1,999 will be subject to Customs Duty just like non-hybrids. That duty also increases from 35% by 25% bringing the effective rate of Duty to 43.75%

The old Customs Duty was 35%, it now increases to 43.75%.
The old MVT was $8.00 per cc between 1,599 to 1,799 cc
The new MVT is $10.00 per cc
The old MVT was $15.00 between 1,799 to 1,999 cc
The new MVT is $18.75 per cc
VAT is applicable at a rate of 12.5%

What the Minister fails to realize is that there is a legitimate right of expectation by all members of the public that were desirous of purchasing hybrid vehicles that would have qualified for the incentives for the period of five years that were promised. Only two years have gone by. Additionally, businesses and persons that tooled themselves and their workshops in anticipation of the business opportunities for the service and repair of hybrid vehicles also have a legitimate right of expectation that has been breached by his reneging on incentives that were said to be valid for 5 years but only lasted two years from the date when they were introduced.

Whether persons and businesses will now take legal action is yet to be seen however there is recent precedent arising out of similar removal of opportunity regarding the foreign used motor vehicle industry. One would have thought that the government would have considered this when deciding to remove the incentives especially based on the reasons they've given.

The impact of these changes means that any hybrid vehicle that was imported and benefitted from the incentive has just seen an increase of it's market value. Additionally, all vehicles between 1,599 cc to 1,999 cc already imported whether registered or not have just enjoyed an appreciation in value.

Pre owned luxury vehicles already imported may have also benefitted from this move because a bird in the hand is worth two in the bush and those already on the road can hold firm on their prices. Whether it would be justified to increase prices of pre owned luxury vehicles already in the country and on sale now will be determined by market forces but would most likely start taking impact from January 2018.

The new measures take effect from Oct 20 2017 and there is a moratorium on the implementation until Dec 31, 2017.

[Dizzy28]

Lol!!!

[Sōsuke Aizen]

So we have to go back to the days where we cut the car in two halves and then weld it back together?

[vaiostation]

Clearly imburt has a strong distaste for people who become successful or aspire to move up in society.
But the main reason for removing the incentives is most likely due to competition massy and other dealerships who are also financiers of the pnm facing right now.

[VII]

Was in bad taste for real,was a pleasure seeing those vehicles for 400k including the latest E class,and the 3 ser and C-class even less ,now it's back to the dealership murder..

The Volvo XC-90 fell quite nicely in that category too,was too good to last in T&T..

All hope isn't lost though, continue big yourself I-8 men!!!

[*$kїđž!™]

[quote="vaiostation"]Clearly imburt has a strong distaste for people who become successful or aspire to move up in society.
But the main reason for removing the incentives is most likely due to competition massy and other dealerships who are also financiers of the pnm facing right now.
[/quote

Very well said sir....I got a incentive to live to see this day

[15devils]

So if say , i buy a hybrid(1999cc) and ship it on the 17th of oct,and lands on our shores 18 nov....wld i hadda pay the new tax ?

[RedVEVO]

Clearly imburt has a strong distaste for people who become successful or aspire to move up in society.
But the main reason for removing the incentives is most likely due to competition massy and other dealerships who are also financiers of the pnm facing right now.

Yes true

PNM has always tried to control and marginalize poor black people ..

After 55 years "they" seem not to understand

And a white man giving dem blows .. still unknown to PNM supporters .

[VexXx Dogg]

Meh.
might re-evaluate my plans later in the year.

If the hybrids are no longer attractive from a tax break perspective, I'll look at the other options.

[hydroep]

Are there a lot of new dealers that came on-stream to import hybrids?

Just asking because the first thing that came to mind was that it's an attempt to stifle competition in the sector. The assumption of course is that the existing "stealerships" have the ear of Government.

[Dizzy28]

Are there a lot of new dealers that came on-stream to import hybrids?

Just asking because the first thing that came to mind was that it's an attempt to stifle competition in the sector. The assumption of course is that the existing "stealerships" have the ear of the Government.

Stealerships are faced with the same taxes as the private dealers and the private dealers can bring in 1.6l displacement and less hybrids. How is competition stifled?

[hydroep]

Are there a lot of new dealers that came on-stream to import hybrids?

Just asking because the first thing that came to mind was that it's an attempt to stifle competition in the sector. The assumption of course is that the existing "stealerships" have the ear of the Government.

Stealerships are faced with the same taxes as the private dealers and the private dealers can bring in 1.6l displacement and less hybrids. How is competition stifled?

The reasoning is that the "stealerships" can leverage sales of other vehicle lines to remain in business. If hybrids are all that the new dealers are selling they may not be able to survive without the market segment targeted by the tax.

Then once competition is eliminated the tax will be removed and it's business as usual for the existing players. They may even be able to acquire the dealership(s) for the lines of their now defunct rivals.

[wing]

Because the foreign used hybrids: Prius, Mazda3, Accord, X-Trail etc will compete directly with the soon to be launched Hybrids: Kia Niro and Xtrail. The foreign used hybrids are also cannibalising sales of the Ioniq and the regular Corolla, Elantra, Cerato etc. Bear in mind the Foreign used cars come fully loaded with the full suite of safety tech. Its just an attempt to force ppl to the financiers ie dealerships.

[Chimera]

only justification for doing that is because new car dealers complaining

people could get a brand new hybrid x5 for 500-700k while dealer selling for 1mil-1.3mil

and some of those hybrid dealers even giving you warranty and local servicing


https://www.facebook.com/gnxinternation ... 505&type=3

[agent007]

The OP clarified a couple things for me which I will adjust in my thread. Much thanks!

[Playerz]

Ah feel d gov want us to be like India and tote we family in a rickskaw and drive scooters (no taxes on these)..purely backward thinking cuz they doh want people the middle class people driving luxury vehicles

[eliteauto]

can anyone say what a Toyota Voxy Hybrid will sell for now with the new tax rate?

[RedVEVO]

can anyone say what a Toyota Voxy Hybrid will sell for now with the new tax rate?

Close to $200 K

[Average]

Clearly imburt has a strong distaste for people who become successful or aspire to move up in society.
But the main reason for removing the incentives is most likely due to competition massy and other dealerships who are also financiers of the pnm facing right now.

He's the type of guy in a movie who sees you and your girl walk in a nightclub and he just takes a sip of his drink while making an angry look.

[Kenjo]

So if say , i buy a hybrid(1999cc) and ship it on the 17th of oct,and lands on our shores 18 nov....wld i hadda pay the new tax ?

Any clarification on this ?has the last date to buy gone or is it the 20 th October ?

[15devils]

Well i have a hybrid unit shipping on the 17th
So far it seems to be safe once before the 20th, i think any purchase after that is new tax, but the bill of lading has to be before 20 oct

[DevilZ]

The 1% want people to buy cng

[RedVEVO]

Clearly imburt has a strong distaste for people who become successful or aspire to move up in society.
But the main reason for removing the incentives is most likely due to competition massy and other dealerships who are also financiers of the pnm facing right now.

He's the type of guy in a movie who sees you and your girl walk in a nightclub and he just takes a sip of his drink while making an angry look.

He's the type of guy who sees you and your girl walk into Patraj Roti Shop and he just takes a sip of his red solo drink while making an angry look and farts.

[sMASH]

The 1% want people to buy cng

Cng man say he waiting for more people to go into cng before he raises that price

[Ben_spanna]

Its the middle CLASS of the country that suffers the most, not the poor black people, you Idiot!!!!!
If people want to continue to oppress themselves in this day then so be it, but don't blame it on the government.

Clearly imburt has a strong distaste for people who become successful or aspire to move up in society.
But the main reason for removing the incentives is most likely due to competition massy and other dealerships who are also financiers of the pnm facing right now.

Yes true

PNM has always tried to control and marginalize poor black people ..

After 55 years "they" seem not to understand

And a white man giving dem blows .. still unknown to PNM supporters .

[RedVEVO]

Its the middle CLASS of the country that suffers the most, not the poor black people, you Idiot!!!!!
If people want to continue to oppress themselves in this day then so be it, but don't blame it on the government.

Clearly imburt has a strong distaste for people who become successful or aspire to move up in society.
But the main reason for removing the incentives is most likely due to competition massy and other dealerships who are also financiers of the pnm facing right now.

Yes true

PNM has always tried to control and marginalize poor black people ..

After 55 years "they" seem not to understand

And a white man giving dem blows .. still unknown to PNM supporters .

The middle class IS the poor black people ..

Because you have a Blu phone and fake gold .. then you middle class ..

And you poor .. 99 % poor

[Dizzy28]

You all prefer MVT and taxes had remained the same but the forex rate go to its real rate (somewhere around 10 - 1 at the pessimistic range)?

Either way cars would and should be more expensive.

[Allergic2BunnyEars]

You all prefer MVT and taxes had remained the same but the forex rate go to its real rate (somewhere around 10 - 1 at the pessimistic range)?

Either way cars would and should be more expensive.

People don’t understand those things you talking about.

[Joshie23]

You all prefer MVT and taxes had remained the same but the forex rate go to its real rate (somewhere around 10 - 1 at the pessimistic range)?

Either way cars would and should be more expensive.

People don’t understand those things you talking about.

Talking and making sense on the Ole Talk block. Shame on you.

[zoom rader]

Another waste of time thread. Keep taking PNM licks and paying their taxes to make the 1% more weath