THE ban on the importation of old vehicles took effect from Sunday, the Guyana Revenue Authority (GRA) has reminded. The restriction is on the importation of motor cars, vans, buses, Sports Utility Vehicles (SUVs) and pickups eight years and older (from the date of manufacture to the date of importation). This measure was announced by Minister of Finance Winston Jordan during the presentation of the 2016 National Budget. It was subsequently presented in Parliament in February and assented to on March 14, 2016, the GRA asserted.
The proposed restriction on these vehicles had been strenuously protested by some auto-dealers and the opposition, People’s Progressive Party. For its part, the Private Sector Commission (PSC) had said that it viewed the move by the APNU+AFC government to implement a ban on importation of vehicles as “unnecessary” at this time and will have a negative impact on many. The commission had also urged the administration to “seriously” review and reconsider taking such a route, since it would most likely place undue pressure on low and middle-income earners.
Opposition Leader Bharrat Jagdeo had also called on the Government to back down from the move, saying that it ensured that persons from the lower middle-class and the poor, many of whom purchase vehicles on terms, as well as auto-dealers, do not suffer the gravity that the announced move will have on their lives and livelihoods.
However, President David Granger had said that the ban on importation of used tyres and old vehicles are in the best interest of the country. The President had said developed countries will not be allowed to treat Guyana like a “junkyard.”
He explained that while everyone has a right to represent his/her own interests, it must be understood that he (the President) is representing the national interest.
“The auto-dealers have a right to express concerns, because they feel their profits will be affected, but the Government has to think about the whole country. The point is when you bring in old vehicles, old tyres, old equipment, that [vehicle] is less efficient. It pollutes the atmosphere; it is more costly, because it requires more maintenance and more spare parts; and you get less life out of it,” President Granger had said in response to a question posed on the subject.
He also said that the environment and the people suffer, and Guyana can ill afford to be on a treadmill trying to replace old equipment. “New equipment lasts longer, and we don’t want developed countries treating us like a junkyard, selling equipment which they can’t use themselves. If they are not going to put up with it because it is inefficient and smokey, why should be put up with it?”
He had said he is not by any means attempting to shut the auto-dealers up, but he noted that “I have a national interest to protect; they have a personal interest to protect.”
On January 29, Finance Minister Winston Jordan had announced that as of May 1 this year, there would be a restriction of the importation of used and/or reconditioned vehicles, and only those under eight years old from the date of manufacture would be allowed into the country. This restriction shall be enforced from May 1, 2016.
This ban will not apply to vehicles used in the manufacturing or agricultural sectors, according to legislation the Finance Minister has tabled to back up the plan.