Ministry of Finance & Planning

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As of July 1, the government will implement a specific tax regime for hybrid motor vehicles, at the lowest aggregate level of 63 per cent.

Hybrid vehicles combine the benefits of gasoline engines and electric motors to improve fuel economy.

Finance and Planning Minister, Dr. Omar Davies, in his 2007/08 budget presentation in the House of Representatives today (April 12), said the move was a clear signal of the direction that the government was taking in terms of broadening the list of goods that qualify for taxation and addressing the difficulty that customs officials face in differentiating such items.

"The tax officials and officials from the Ministry of Industry, Technology, Energy and Commerce are in further discussion about broadening the list of goods, which would be qualified. The practical problem relates to the difficulty faced by custom officials in differentiating items which qualify. Further work needs to be done and when this is completed, changes will be effected," he told the House.

Meanwhile, Dr. Davies said, the tax system must give consideration to energy efficient items. During the last fiscal year, he noted, exemptions were given for energy efficient importation, particularly items which used solar energy. "Our estimate is that this led to revenue loss of approximately $550 million during the last fiscal year. However, the greater objective of reducing our energy import bill is being served," he stated.

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