Dear Editor,
The letter by Nigel Hinds relating to the exorbitant import taxes on vehicles, (SN, 30/09/2018) is something of concern to Guyanese. Mr Hinds’ letter is accurate. I wrote on this tax issue many years ago during the reign of the previous government. Mr Hinds did exactly what I did under this not-so-new government.
The Commissioner-General Godfrey Statia is being disingenuous in his letter responding to Mr Hinds (SN, 4/10/2018). Mr Statia stated that taxes were reduced on those classes that account for 90% of vehicles imported. He attributed a cost of US$7,500 on these 2014 model vehicles. Mr Statia is wrong on several fronts. A 2014 Toyota Premio costs about US$10,000. Mr Statia himself understated the value by US$2,500. But the reason these types of low-end vehicles accounts for 90% of imports validates Mr Hinds’ point in that these are the types of vehicles most Guyanese can afford.
The taxes for a 2014 Toyota Premio costing US$10,000 is US$6,530 since this falls within the under four years’ old category. Someone will have to pay 65% of the cost of the vehicle in tax. Some Premios have 1800 cc engines and the tax for this category using the same cost is US$8,183 or 82%.
A recent tax review committee made some recommendations. It is possible that this resulted in the minor decrease in taxes of vehicles under the 1500 cc and 2000 cc categories. The taxes are still exorbitant. The committee did a poor job.
A Toyota Camry, as stated by Mr Hinds, is a common family car in North America. It used to be here as well until Toyota placed a 2300 cc engine in the Camry. The taxes now on a 2013 Toyota Camry costing US$10,000 is US$29,950 or 300% since this five year old vehicle falls in the over five year old category and has an under 2500cc engine. This is what Mr Hinds is saying, and this is where Mr Statia is being disingenuous.
I recommend that the total tax for vehicles with the under 1500 cc engine be reduced to 45% of cost, those under 2000 cc be reduced to 50%, under 2500 cc to 55% and under 3000 cc to 60% of cost.
Yours faithfully,
Harrish Singh
