New rules for importing vehicles clarified.

– No need for tax compliance to get driver’s licence

THE importation of heavy-duty vehicles, particularly those used in the industrial and agricultural sectors, will not be affected by the proposed restriction on importation of vehicles older than eight years, Finance Minister Winston Jordan has said.In his 2016 Budget presentation, he had announced a proposed ban on the importation of used and/or re-conditioned vehicles older than eight years from the date of manufacture.

This measure, like many others, has failed to gain the support of Opposition Leader Bharrat Jagdeo, who contended that persons operating within the agriculture and mining sectors would be severely affected in addition to the “poor man” who would not be able to afford a vehicle within the eight-year range.

But on Friday evening, in the National Assembly, the Finance Minister declared that either the Opposition did not read the proposed legislation which will validate the budget measure, or did not understand the document.

In order to address the “misinformation” being peddled by the Opposition People’s Progressive Party (PPP), Minister Jordan clarified the measure: “The restriction excludes heavy-duty vehicles, including trucks, lorries, vehicles used in the agriculture and industrial sectors, and special-purpose vehicles. Only motor cars, SUVs and so on will be affected by the age limitation,” he explained.

The Customs (Amendment) Bill, which details the proposed measures, was presented to the National Assembly on Thursday by the Finance Minister.

Minister Jordan has also notified the National Assembly of Government’s intent to ban the importation of used tyres, but this measure was also misrepresented by the Opposition.

Minister Jordan said that the ban would not affect vehicles used in the manufacturing and agricultural sectors.

In addition to the proposed ban, Government has also proposed to reduce the taxes on new tyres, to encourage their use.

Though not objecting to the proposed ban on used tyres, taxi drivers and dealers in the trade are of the opinion that used tyres should be phased out. A driver of a private car told Guyana Chronicle that the phasing out of the importation of used vehicle tyres should be seen as part of a wider effort to enhance road safety and gradually reduce the environmental hazards associated with the disposal of tyres.

“Guyana should not be a dumping zone for old and used stuff,” he said.

Meanwhile, Forbes Garraway of Forbes Vulcanising said the ban will affect the business overall, as the used tyre trade is a US$30M business in Guyana. He recommended that “Government should drop the duty on the new tyres and eventually the used ones will be phased out naturally.

“You won’t find car dealers bringing AT170 Toyota Carinas anymore, because no one wants (them). The same way (Government) can do with the used tyre business. If you really drop the taxes on new tyres, people will buy them instead; but now you’re forcing people to go deeper into their pockets,” he contended.

The proposed ban on used tyres and the restriction of vehicles older than eight years old form part of a menu of measures which support the APNU+AFC Government’s programme of ‘greening’ the economy and protecting the environment.

Under the measures to improve tax administration, the Leader of the Opposition had told citizens through the press that they would now be required to be tax compliant in their effort to secure a driver’s licence. Jagdeo had told reporters that minibus and taxi drivers would suffer the worst.

Minister Jordan has, however, told the House there is no need to drive fear into the hearts of people. He explained that the amendment announced will not affect the Motor Vehicles Act, but the Tax Act; hence it does not affect the issuance of driver’s licences.

The Amendment to the Tax Act will ensure that prior to the issuance of all licences for public use, including those all forms of trade and business, applicants fulfill their obligations to file their annual tax returns and pay all their taxes.