By Sue-Ann Wayow
TO encourage citizens to save money from vehicle fuel consumption, the Cabinet has agreed to allow for the waiver of taxes and customs duty on suitably sized imported hybrid motor cars, both new and used.
This was announced by Finance Minister Colm Imbert in the Lower House on Friday just after he announced that fuel prices were increased.
In his statement to the Parliament, Imbert said, “I wish to report that the Cabinet also agreed yesterday that in order to encourage motorists to conserve fuel, and to alleviate the effect of the increased prices of fuel on our citizens, the Ministry of Finance has been authorised to make, in or around the middle of May 2022, the necessary arrangements to allow for the waiver of taxes and customs duty on suitably sized imported hybrid motor cars, both new and used.
“These tax concessions will be designed to cater for typical car owners and will not be available for owners or importers of high-end luxury hybrid cars,” he added.
The minister gave an example that a typical hybrid car falling into the new category of tax exemption would have an engine size not exceeding 1600 cc, an electric motor generating 45 kW, a total power output in the vicinity of 78 kW and would not be more than three years old.
Imbert also said that further details of the exempt category of vehicles will be announced in due course.
Announcement good but deceptive
President of the Trinidad and Tobago Automotive Dealers Association (TTADA) Visham Babwah, last month told AZP News that while the Government’s thrust towards electric vehicle was welcomed, focus should be placed on hybrid vehicles in the interim as they were less expensive and had a wider variety to choose from.
Babwah has been importing hybrid cars since 2011 which he says burns 50% less fuel than an internal combustion engine of a vehicle about the same size which was significantly less. The price was also more conducive to the majority of the driving population who were mostly from the low and middle income earning bracket.
On Saturday, Babwah said TTADA has been calling for waivers on hybrid vehicles for some time and while he was pleased that the announcement was made it would not really benefit much persons unless the specifications were modified.
Referring to Imbert’s example of which type of hybrid vehicle would qualify for the waiver, Babwah said, “Those are really small cars. To have a good size car, the engine must be at least 1599 cc which Imbert mentioned but the catch is in the kilowatt. Kilowatt should be about 112 or 115 for a sizeable vehicle and for three years, the vehicle will still be costly as it is fairly new. We are proposing that it be increased to six years.”
“We are hoping that they relook those specifications so that the population can really benefit. Other than that, it would just be a proposal to deceive the people,” he added.
