Vehicle owners gear down for April 1 used tyres restrictions

Mar 19, 2017 News

In two weeks’ times, vehicle owners will be gearing down as Guyana starts implementing a

Used tyres dealers meeting with GRA last year.

restriction on used tyres.
The Guyana Revenue Authority (GRA) which will be overseeing the monitoring will not be allowing used tyres for motor cars, vans, pickups, Sport Utility Vehicles (SUVs) and minibuses to enter the country.
Rather, the tyre shops and wholesalers would have to start preparing themselves to deal with new ones.
GRA is expected as early as this week to issue the guidelines on the restrictions which will not affect truck operators and other categories of vehicles.
The stocks that are in hand will be allowed to be sold with a tentative July month-end deadline proposed.
While Government has reduced taxes on new tyres from 30 to 15 percent, and VAT charges from 16 to 14, it remains to be seen how vehicle owners deal with the cost of new tyres.
Government has been arguing that measures are in keeping with a programme to green Guyana and improve road safety. A huge stock of old tyres at the Haags Bosch dump site in Eccles has created a headache for waste management managers.
GRA has also been arguing that used tyres will not last as long as new ones.

The price for a new tyre for a 16 inch rim for a Toyota Premio could cost between $15,000-$19,000, dealers say.

A shortage of staff at the Guyana National Bureau of Standards which currently monitors used tyres importation has made it impossible for a proper check of the used tyre imports, raising questions about safety.
Yesterday, checks by Kaieteur News at a number of dealers found that they are aware and resigned to the April 1, deadline. A number of them have stocked up.
However, it will be anything but cheap for a new tyre. One for a Toyota Premio car with 16 inch rims will cost between $15,000 and $19,000, according to dealers on the East Bank.
The bus tyres are around those prices too.
That will represent a steep ask for a used tyre which runs between $4,000 and $7,000 each.
Guyana first learnt of the plan to restrict during the budget presentation last year.
Meanwhile, a plan by government to have new cars outfitted with new tyres when they land here may be modified. GRA is reportedly looking at new standards that will dictate the quality of tyres that has to be on the rims.
Last year, when Government presented the national budget for this year, it was made final…the deadline for used tyres importation for the categories above would be April 1st of this year.
There are scores of tyre shops around the country with at least 20 containers or an estimated 20,000 used tyres entering Guyana annually.
With the taxes on new tyres too high, many car owners had been opting for the cheaper, used tyres.
Operators had met with the Guyana Revenue Authority and warned that vehicle owners will not afford to buy new tyres.
However, the used tyres association has reportedly been meeting with GRA on the hurdles that will arise.