Grace period for imposition of increased taxes and import duty on imported private motor cars
The Minister of Finance, Hon. Colm Imbert, M.P., wishes to advise that at its meeting last week, Cabinet agreed that with respect to the announcement made in the 2021 Budget Statement regarding an increase of taxes and import duty on certain private motor cars, namely certain smaller engine CNG, electric and hybrid cars, the new taxes will be applicable from January 1st, 2021.
All private motor cars that are imported and cleared through Customs on or before December 31st, 2020 will therefore be taxed and/or be subject to import duty at existing rates and/or enjoy the existing tax and import duty exemptions.
New rates of tax and import duty on the cars in question will take effect on January 1st, 2021.
Cabinet also confirmed that the reduction in the permissible age of imported foreign used cars to three (3) years, will take effect in January 2021.