NEWS

Duty On Hybrids From January, Drop For Small New Vehicles

Second-hand car dealers who were quick to get their hybrid vehicle imports released from Customs before the Budget announcement, are probably kicking themselves in the guts today. This after Government
23 Jun 2016 14:36
Duty On Hybrids From January, Drop For Small New Vehicles
Hundreds of Japanese second hand Toyota Prius, and Honda hybrid imported before the budget announcement parked in Nabua, Suva. Photo: RONALD KUMAR.

Second-hand car dealers who were quick to get their hybrid vehicle imports released from Customs before the Budget announcement, are probably kicking themselves in the guts today.

This after Government last night announced there will be no immediate introduction of duty on hybrid vehicles as opposed to earlier industry rumours.

However, not all is lost for these second-hand car dealers. Specific rates of duty will apply on second-hand hybrid vehicles. But, it will come into effect from January 1, 2017 instead of an immediate effect.

Second-hand hybrids which are less than 1500cc will attract $2000 specific duty. Hybrids more than 1500cc but less than 2500cc, will attract $2500 specific duty. All second hand hybrids above 3000cc, will attract $6500 specific duty.

All new hybrid vehicles however, will continue to attract zero duty.

Duty drops on new vehicles, second hand up

Good news for those wanting to buy brand new vehicles as duty on vehicles with engine capacity not exceeding 2500cc has been reduced from 15 per cent to five per cent.

On the flip side, duty on second hand vehicles has been increased based on the various engine sizes.

Whilst previously, duty on these second-hand vehicle imports ranged from $5350 to $13,000, the new duty rates will range from $7500 to $23,000.

The changes have been brought about to encourage people to opt to buy brand new vehicles as opposed to second-hand vehicles by making it more affordable.

Feedback:  rachnal@fijisun.com.fj

 

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