Cost for transfer of motor vehicle registration increased

Jan 06, 2017 News

The cost to transfer motor vehicles from one person to another has been increased as a result of the passage of the Motor Vehicles and Road Traffic (Amendment) Bill 2016. The amendment was passed yesterday in the National

Registered owners will now have to pay increased transfer fees to the GRA.

Assembly after it was read for a third time in the House.
The amendment speaks to the First Schedule of the Motor Vehicles and Road Traffic Act. Regarding motorcycles, a fee of $5,000 will be charged and a sum of $25,000 or two per cent of the selling price or current valuation, whichever is greater, will be charged on all other vehicles.
In addition to this, Section 9 of the Act was amended to abolish the requirement for Motor Vehicle compliance from the Guyana Revenue Authority. Further, foreigners who wish to drive in Guyana during their temporary stay will have to pay a cost of $2,000 for a driving permit and the same for a letter of authenticity of drivers’ licences.
According to Minister of Finance Winston Jordan, the requirement for a certificate of compliance was first introduced by Act 14 of 1982. He said that the certificate qualifies that the registered owner, in accordance with Section 60 of the Income Tax Act Cap. 81:01, delivered all returns and paid all outstanding taxes or made arrangements for such.
Jordan said that what has happened over the years is that many persons, instead of applying for the certificate, mainly transferred possession of the said vehicles by way of irrevocable Powers of Attorney or some transfer of title through the courts by means of specific performance.
He said that this was done to circumvent the process intended to trap persons who have been delinquent in their payments to the revenue authority. Jordan added that it is not unusual that inducements are offered to staff of the GRA to secure the certificate.
“Thus the abolishment of this requirement for a certificate of compliance from the Commissioner-General of the revenue authority for possessing a transfer or ownership of motor vehicles will remove these loopholes, but at the same time reduce the burden of taxpayers by removing the duplication of documents submitted by taxpayers to the revenue authority.”
The Finance Minister said that this measure will reduce the processing time and free-up staff and effort to more revenue generating and high risk activities. He said that the Bill will afford benefits on both sides and will improve tax administration as well as reduce efforts to corrupt staff of the GRA.
In his remarks on the amendment, People’s Progressive Party Civic Member of Parliament Nigel Dharamlall said that the $25,000 will only be applied on any vehicle exceeding a cost of $1.25M after which the two per cent rate will apply. He described it as “another hardship created by the government which Guyanese will have to bear”.

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