Ending used tyre imports will not see big revenue loss to gov’t

Doorgen told Stabroek Business that the idea that was currently being mooted by both the Council and sections of the business sector was that the current rates of duty of 30% and 5% on new and used tyres respectively, be reversed. “We believe that if this happens it could make the prices of new tyres more accessible and help to phase out used tyres,” Doorgen said.

Advocates of the phasing out of used tyres have also pointed out that while the government has embarked on a countrywide public relations campaign to ‘sell’ the Low Carbon Development Strategy (LCDS) it continues to be unyielding on the issue of the used tyre business.

Information on tyre imports made available to Stabroek Business indicates that Guyana imports approximately 34,384 new tyres and 131,083 used tyres annually.

Advocates of the phasing out of used tyres have made the point that while government is collecting a modest amount in duties, given the significant volumes on used tyre imports, the downside is that environmentally it had to deal with the consequences of a non-biodegradable product as well as with the road safety implications.

Four new tyres cost an average of $64,000 and have an estimated road life of three years while four new tyres cost an average of $16,000 and have an estimated road life of nine months. However, it is common for used tyres to remain in service for periods well in excess of nine months, a practice which local road safety   lobbyists say increases the risk of accidents.

The disposal of used tyres reportedly costs the City Council an estimated $1.2m annually.

Elsewhere in the Caribbean Community, Jamaica and Barbados have banned the importation of used tyres while Trinidad and Tobago is seeking to introduce legislation to do the same.