Tax break to include hybrids – minister

Importers of hybrid vehicles are to benefit from a tax holiday similar to that now being enjoyed by importers of electric vehicles.

Minister of Energy and Business Development Kerrie Symmonds made the disclosure on Wednesday afternoon while responding to a question during the Barbados Chamber of Commerce and Industry (BCCI) annual general meeting at the Hilton Resort.

While noting that Prime Minister Mia Mottley was scheduled to provide the details, Symmonds disclosed that the tax reduction was definitely coming for hybrid vehicles, as he gave the assurance that Government was providing incentives to help individuals and companies put green initiatives in place so that the country can achieve its goal of 100 per cent reliance on renewable energy sources by 2030.

During her budget presentation in mid-March, Mottley announced that commencing April 1, 2022, an Excise Tax and Value Added Tax (VAT) holiday would be granted on the importation of electric vehicles for a period of two years.

This means, importers of those vehicles will only now pay the 10 per cent import duties.

However, questions were raised among some in the business community about this and other measures, with some questioning whether it would include hybrid vehicles.

Symmonds told the BCCI audience on Wednesday that following a meeting between private sector representatives and officials from the Ministry of Finance, the decision was taken to include hybrid vehicles in the mix for the tax holidays.

“Let me take the opportunity to say, and I checked it only yesterday (Tuesday) in anticipation of a similar question, that the conversations that some of you folks would have had with . . .  the Ministry of Finance have borne fruit. There is the intention of the Prime Minister herself being able to make the announcement with respect to hybrids, very shortly,” He said.

Recalling the budget proposal for the tax break on electric vehicles starting April 1, 2022, Symmonds said “That did not apply on the face of the Budget to the hybrid vehicles. That discrepancy, if you will, will be corrected going forward.”

Acknowledging that the high taxes associated with the importation of electric and hybrid vehicles were a major impediment, Symmonds said Government recognised the importance of the transportation sector in the grand scheme of things.

“We are in the middle of a transformative era where we are trying to incentivize the greening of the economy and the greening of industry. In fact, the greening of the habitat generally, even homes in every single way [and] there are incentives, I suspect, are to be found across all industries . . . It is about greening also of ground transportation,” said the senior government minister. (MM)