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AFC to slash taxes on vehicles
-taxis, minibuses to pay only 10% CIF
The Alliance For Change (AFC), if elected to office, will simplify and reform the tax regime on
Robert Badal
motor vehicles.
This is according to Robert Badal, Chief Executive Officer of the Pegasus Hotel, who was at the time speaking at the party’s weekly press conference at the Fourth Street, Campbellville headquarters yesterday. Badal recently endorsed the AFC.
According to the party, the plan is for all approved taxis and minibus operators to only pay 10% tax on the Cost, Insurance and Freight (CIF) value.
Taxes on new cars and other vehicles for private use will be halved to what currently exists.
This, Badal said, will stimulate domestic demand for new vehicles away from old used vehicles which will also raise a higher revenue, while at the same time making ownership more affordable.
Adding that special concessionary rates will be given to the transportation sector on new vehicles, Badal said the current tax regime on motor vehicles is repressive and reflects the PPP/C’s objective of suppressing domestic consumption. He believes that on the surface it is intended to extract the maximum taxes from an already heavily taxed people.
“A Rav 4 that cost $5.8M carries a tax of $9M; an SUV (Prado) that cost $9.6M carries a tax of $20M; a Toyota Corolla that cost $4M carries a tax of $4M while a Camry costing $8M attracts a tax of $18M. To buy a new vehicle, you have to give the government two such vehicles is some cases. However, nobody buys a new vehicle and pays the correct taxes. Therefore, the objective of the government is not really one of revenue maximization,” Badal said.
According to Badal, it is one state of repression that is used to destroy the freedom of choice and dignity as a hard-working people. A new vehicle attracts the highest of taxes… less taxes are levied on vehicles older than four years, which results in Guyana becoming a graveyard for used vehicles, the majority of which are imported more than 10 years ago.
Badal further emphasised that the entire process is a viable and sustainable one, since after reducing the taxes there is greater compliance.
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