The Cabinet of Ministers, has granted approval for the extension of reduced Import Duty and Excise Tax rates, specifically for Electric and Hybrid Vehicles.
This extension spans from December 1, 2023, to August 30, 2024.
The decision to extend these reduced tax rates aligns with the objectives of the OECS Commission led Solar Challenge “ Race to the Sun” as well as the goals and objectives of the recently approved National Energy Policy (2023-2030) and Saint Lucia’s updated Nationally Determined Contributions (NDCs), emphasizing the transport sector’s significance in mitigating Saint Lucia’s greenhouse gas (GHG) emissions.
Recognizing the pivotal role of tax incentives in encouraging the adoption of hybrid and electric vehicles while simultaneously curbing the country’s reliance on fossil fuels through the electrification of energy demand which dovetails the greening of the island’s electricity grid, the Cabinet believes that maintaining lower tax rates will promote the uptake of environmentally friendly vehicles. The aim is to reduce emissions within the transport sector.
To address stakeholder concerns and prevent a potential increase in effective taxes on hybrids and EVs due to the waiver’s expiration, the Department of Finance proposes to retain the existing excise and duty rates (ranging from 5.0 to 10.0 percent import duties) from December 1, 2023, to August 30, 2024.
This extension will afford the Department sufficient time to implement the new HS (HS 2022) and prepare for potential revisions to the excise and duty system for all vehicles, which will be presented for Cabinet’s consideration.
Moreover, to bolster efforts towards reducing carbon emissions and achieving energy independence, the Departments of Finance and Infrastructure have been diligently working to ensure that the upcoming introduction of the new HS classification system incorporates specific categories for different classes of hybrids and EVs.
The intent is to propose a comprehensive revision of the excise and duty system for all vehicles in alignment with these classifications.
SOURCE: Department of Finance
So the people who can afford an expensive electric vehicle get a tax break? While the country courts the new oil barons of Guyana? How do these policies make sense?
I am buying one so this is right up my alley I can charge it all I want It won’t cost me a thing
What happens when it is time to change the batteries on these electric/hybrid vehicles? The cost of these batteries will exceed whatever savings you make on duties and fuel. Expect to pay a minimum to $10,000 (item cost, shipping, duties, labour) to replace battery on a smaller hybrid (Toyota Aqua, Honda Fit and similar). Far more for an electric car. And of course if you got to a roadside mechanic to try to save on cost, expect a disaster. Then now when these things age and start to burn….
People are thinking that by owning an electric\hybrid vehicle youre saving loads on fuel ?? news flash youre not actually that much better off because for instance when using an electric car with a range on paper of 250 miles you actually get about half that because everytime you turn on the Air con or go uphill it uses quite alot of power.
Im not brilliant, dropped out of primary school, never further my education and yet i will not fall for the above mind controlling article. The following points below should be considered before your bank balance start reducing.
. how many charging station are there in the communities and villages
. what happen if you are in an isolated area and you have an emergency
. We all know the saying lead by example, minister King as head of ministry of transportation i suggest you replace all government vehicles starting with the Ministers Vehicles, POLICE, Emergency, Judges, Magistrates, all government official as of January 1st 2024 and we the public will follow
I am not Bright but I shine when I say this carbon Emission is just a world order on the poor people to suck monies.
. lets take SLASPA will all ships coming to port be HYBRID ????????
. Please minister King stop this world Order and if you really wants to help us LUCIAN FIX OUR BLOODY ROADS WE THE CITIZEN PAY OUR ROAD TAXES EACH YEAR.
. With all said above the problem is fixed by making it Mandatory for all vehicle to carryout a detail carbon emission Test during inspection and give the Traffic officers instruments to carryout spot test. Introducing this can reduce road tax for the poor only and the revenue collected from the above will help fix more road.
Good job… Cost savings could only benefit St Lucians.