#018 (20.09.13) - page 11

Motorists who were
driving along the Sir
Solomon
Hochoy
Highway in the vicin-
ity of the Mid Centre
Mall, Chaguanas, a
few weeks ago, ob-
served hundreds of
new vehicles parked
on a compound. And
there was specula-
tion that the car deal-
A cut-out of the Sunshine article dated August 16th, 2013.
er may have been
trying to beat the tax-
man.
And they may have
been right, as Finance
Minister Larry Howai
announced in the re-
cent $61.4 billion bud-
get, that there will be a
25 percent increase in
the customs duties for
new and foreign-used
high-pend cars (over
2499cc), effective Oc-
tober 1, 2013.
The new require-
ment will apply to
vehicles with 2.5 litre
engines and higher,
excluding T-vehicles
(Transport) and ve-
hicles registered
for use as maxi-
taxis.
However,
some dealers
are wondering
if those ve-
hicles parked
up near the
Mall,
which
were published
in the Sunshine
Newspaper dat-
ed Friday August
16, 2013, (Page
30) fall in the new
25 percent tax in-
crease.
The car dealer
may have gotten a
“tip-off” from a gov-
ernment source about
the increase taxation
on new vehicles and
rushed to import the
vehicles before the
announcement of the
budget.
These cars may not
be subjected to the 25
percent increase and
would be able to sell at
a much cheaper price
than those coming in
after October 1.
The President of the
Automobile Dealers’
Association of Trinidad
and Tobago (ADATT),
Phillip Knaggs, was
reported as saying
in a daily newspaper
that dealers have al-
ready placed orders
for new vehicles with
manufacturers, months
in advance, and ne-
gotiated with custom-
ers based on specific
pricing.
There would be
stock intransit that
would arrive after Oc-
tober 1 and therefore,
it has to be subjected
to the new duty crite-
ria, after already being
ordered at a particular
budgeted price.
These cars are ‘sail-
ing’ in the ocean and
dealers would face the
post-budget hike.
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