The AFC says it will simplify and reform the tax regime on motor vehicles and give special concessionary rates to the transportation sector on new vehicles.
In addition, all approved taxis and minibus operators will only pay 10% tax on the CIF (Cost, Insurance and Freight) value.
The AFC in a statement from member Robert Badal on Wednesday said that the current tax regimen on motor vehicles “is repressive and reflects the PPP/C’s objective of suppressing domestic consumption.”
According to the AFC, to buy a vehicle “you have to give the government two such vehicles in some cases. However nobody buys a new vehicle and pays the correct taxes therefore the objective of the government is not one of revenue maximization.”
The AFC contended that the present arrangement “is more one of state repression by destroying our freedom of choice and dignity as a hardworking people. In addition it protects an avenue (market for old vehicles) that is used by money launderers.”
While a new vehicle attracts the highest of taxes, less taxes are levied on vehicles older than four years and the result is that Guyana has become a graveyard for used vehicles, the majority of which are imported at more than 10 years old, the AFC said in the statement.
The party which is contesting the national and regional elections on Monday said that “the policy creates corruption in public office through the granting of duty-free concessions.”
The AFC assured that taxes on new cars and other vehicles for private use will be half of what currently exists. “This will stimulate domestic demand for new vehicles away from old used vehicles and raise a higher level of government revenue while at the same time making ownership more affordable,” the statement added.
