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Motor Traders Warned: FRCA Will Monitor Duty Imposition

Effective tomorrow, all reconditioned or used full hybrid vehicles will be subject to various duties. In light of this, the Fiji Revenue and Customs Authority will be strictly monitoring the
31 Dec 2016 11:00
Motor Traders Warned: FRCA Will Monitor Duty Imposition
Reconditioned and used imported hybrid vehicles parked in one of the motor vehicle trader’s Customs bond in Laucala Beach Estate. Photo: RONALD KUMAR

Effective tomorrow, all reconditioned or used full hybrid vehicles will be subject to various duties.

In light of this, the Fiji Revenue and Customs Authority will be strictly monitoring the Customs Duty imposed on these vehicles.

It has been made clear that motor vehicle dealers selling used or reconditioned hybrid motor vehicles that were brought into the country with no duty paid i.e. prior to January 1, should not charge customers any duty.

A team from FRCA will be out on the field pre-duty and post-duty imposition to ensure Motor Vehicle dealers are adhering to the duty rate changes announced earlier this month.

FRCA chief executive, Visvanath Das, said: “This is a reminder to all Motor Vehicle dealers.

“For used or reconditioned hybrid motor vehicles that have been cleared under duty concession prior to January 1, the concessionary rate granted is to be reflected on the price of the same when sold,” he said.

The Authority is issuing a stern warning to dealers that a Customs Infringement Notice will be issued if Motor Vehicle dealers are found abusing the system.

“Any abuse will result in issuance of Customs Infringement Notice for not passing on the zero-duty to consumers,” he said.

“Offenders will be fined up to $50, 000 per offence.Our consumers play a crucial role in effective tax administration by reporting any non-compliant practises by businesses.”

FRCA is urging the Fijian public to report immediately any incident of increased price on these stocks. You can send details with documentary evidence to ceo@frca.org.fj .

Mr Das has already stated: “We expect second hand dealers to be honest and responsible when selling such vehicles to customers.

“We advised buyers that if they wish to re-confirm with us or clarify with us on the landed cost to ensure that concession is being enjoyed they can visit our tariff and trade section, Suva for verification.

“This just to give some level of assurance that duty concession is being enjoyed by the consumers.”

Meanwhile, when importing a new full hybrid vehicle there will nil Fiscal duty, nil import duty and 9% VAT.

Hybrid Vehicles are those vehicles that run on both combustion engine and electric motor.

Feedback:  rachnal@fijisun.com.fj

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