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Duty Concession on Motor Vehicles

Duty Concession on Motor Vehicles
August 11
11:00 2018

The Fijian Government over the past few years has pro­vided duty relief on the im­portation of used motor vehicles .

This was done inorder to in­crease vehicle purchasing options for Fijians.

In addition to the duty reductions in the importation of vehicles for private use, the Government has also made policy changes.

This was to encourage long-term investment in the public transpor­tation sector.

A number of taxi and bus owners are now able to afford and upgrade their fleet with these incentives which has led to travel comfort in public service vehicles.

 

To encourage the importation of newer and quality vehicles for the country, the Government in its 2018/2019 National Budget an­nouncement the reduced fiscal duty on used or re-conditioned mo­tor vehicles.

These vehicles should be two years old or less from the year of manufacture and duty was re­duced from 32 per cent to 15 per cent or half the current specific rate of duty whichever is the greater.

Furthermore, as an incentive to the public transportation industry, concessionary fiscal duty rates for taxis has been extended to include used diesel/petrol vehicles at 7.5 per cent or a quarter of the sub­sisting specific rate whichever is greater.

The incentive has been extended for another two years until June 30, 2021 including the concession­ary duty regime for the bus indus­try and inter-island shipping.

How to Personally Import Vehicles into Fiji

To import a used vehicle into Fiji, you will require an import license which is issued by Revenue and Customs with no fees charged.

When applying for vehicle im­portation, you will be required to attach documentary evidence per­taining to the vehicle.

For example, export certificate (original and translated version), deregistration certificate, cancel­lation certificate, or any other doc­uments that may be required from the relevant transport authority of the exporting country.

Used petrol and diesel vehicles that are less than five years old (from the year of manufacture) will have to be compliant with Euro 4 standards.

Euro 4 standard is the current ac­ceptable pollutant emissions level for vehicles of all categories.

Special purpose vehicles, Com­pressed Natural Gas (CNG), Liq­uefied Petroleum Gas (LPG), and solar vehicles less than eight years old (from the year of manufacture) will also have to be Euro 4 Stand­ard complaint to be eligible for im­portation.

The duty rate applicable on a ve­hicle is based on the engine Cubic Centimeters (cc) ratings and the duty charged will be the duty rate on the total landing cost in Fijian currency which would be total of the Cost, Insurance and Freight (CIF).

Tractor and Trucks Imported for

Agriculture Purposes

The importation of farm tractor is free of duty except the 9 per cent Value Added Tax (VAT).

Companies or individuals in the sugarcane industry are eligible for duty concessions on importation of new cab and chassis at 5 per cent fiscal duty, provided that the following conditions are met:

A support letter will also be re­quired from the Ministry of Sugar in this regards.

Duty on tyres

For new tyres, only a fiscal duty of 5 per cent plus 9 per cent VAT is payable on the total landing costs (Cost, Insurance and Freight) in Fijian currency.

Please note that importation of second hand tyres are prohibited into the country.

The Revenue and Customs is here to serve you, our taxpayers and we are ready to assist you.

However, we request taxpayers to obtain the necessary approvals prior to the importation of goods and machinery into the country to avoid unnecessary delays and costs for clearance such as storage fees or in extreme scenarios re-export costs.

Please visit any Revenue and Cus­toms office or you can email info@frcs.org.fj for further assistance and clarification.

Feedback: maraia.vula@fijisun.com.fj

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