Fixed consumption taxes for used vehicles from September l -Customs valuations will no longer be necessary Stabroek News July 17, 1998 The consumption tax on imported used vehicles will be uniform from September 1 as set out in an Order tabled in Parliament on Wednesday to amend the Consumption Tax Act. This is designed to level the playing field for consumption tax payable on vehicles and to put an end to the numerous valuation problems experienced by the Customs and Excise Department. "Every single week valuation officers have accepted different values from different people and this has caused car dealers to take the customs department to court among numerous other problems," a senior government functionary said Thursday. He said that this new Order, the Consumption Tax (Amendment) Order l998, introduces fairness into the system and will have to be complied with in each transaction. The official said the Order is based on one used in Trinidad and Tobago and has gotten the nod from used car dealers whom Finance Minister, Bharrat Jagdeo, met twice on the issue. Currently second hand motor vehicles are subjected to 30% consumption tax and 45% duty based on the invoice or a Customs valuation while trucks are subjected to a similar c-tax but 10% duty. The government official said even if the value of a vehicle is genuinely lower which would have led to a lower rate of consumption tax using the current formula, the new formula will apply. A customs officer yesterday agreed that the Order will put an end to allegations of corruption in the valuation section in its dealings with the importation of used vehicles. Over 10 000 vehicles are imported annually, 90% of these being second hand. Section 2 of the Order, dated July 14, provides that it applies to all vehicles whose date of manufacture is four years or in excess of four years before the date of importation. The table below lists the new consumption tax payable. c-tax Coaches, buses and mini-buses: less than 21 seats US$2600 more than 21 seats but less than 29 US$6900 Motor cars with cylinder capacity: less than 1000cc US$4200 above 1000cc but less than 1500cc US$4300 above 1500cc but less than 1800cc US$6000 above 1800cc but less than 2000cc US$6500 above 2000cc but less than 3000cc US$13500 above 3000cc US$14500 Other vehicles with compression-ignition internal combustion piston engine (diesel or semi-diesel) less than 1500cc US$6200 above 1500cc but less than 2000cc US$8200 above 2000cc but less than 2500cc US$15400 above 2500cc but less than 3000cc US$15500 above 3000cc US$17200 Motor vehicles for the transport of goods Gross vehicle weight (GRW) less than 5 tons US$2000 above 5 tons but less than 7 tons US$3000 above 7 tons but less than 10 tons US$4500 above 10 tons but less than 15 tons US$5000 above 15 tons but less than 16 tons US$6500 above 16 tons but not 20 tons US$7500 above 20 tons US$9500