CITIZENS have begun to welcome the budget measures related to a review of taxes for importation of vehicles, the banning of old/used tyres, the restriction on importation of vehicles over eight years old, and the reduction of the price for fuel.
As announced in the budget:
1. With effect from February 1, 2016, the prices of fuel sold by Guyana Oil Company (GUYOIL) will be reduced. As of Monday, the Guyana Oil Company (GuyOil) will reduce the price on gasoline from $190 per litre to $170. Dieseline will be reduced from $161 to $150, and kerosene from $120 to $90.

2. The Finance Minister has given notice of intent to ban the importation of used tyres, and to reduce taxes on new tyres to encourage their use. This ban will be put into effect as soon as some procedural hurdles are cleared.

3. There will be a restriction on the importation of used and/or re-conditioned vehicles. Only those under 8 years old from the date of manufacture to the date of importation will be allowed. This restriction shall be enforced from May 1, 2016.

4. There will be a reduction of the excise tax from 50% to 10% on motor vehicles under four years old and between 1500cc and under 2000cc. As a result, the effective tax rate of 152.3% will be reduced to 85%.

5. There will be the removal of excise tax on motor vehicles under four years old and under 1500cc. These vehicles currently attract excise tax at the rate of 30% and an effective tax rate of 118.7%. With this removal, the effective tax rate will be reduced to 68.2%.

HOW THE PEOPLE REACTED

GLENDON LASHLEY: “A reduction in the price for fuel is good. It is also good that people would be able to afford to bring in their own vehicles now, because of the drop in tax. Also, most mechanics will feel an ease, since the parts for the vehicles will be easy to get, rather than for the older ones.”

DHARAMPAUL SOMAROO: “We will get the cheaper cars, but the duty still needs to be dropped; because, if you buying a brand new car, you still have to pay duty. Yes, the

fuel drop, but it could have dropped earlier.
“Nevertheless, the spare parts man, who overdoing it with the prices, will have to lower it because the parts for the newer vehicles will be easy to get.”

NORRIS WILLIS: “The fuel should have reduced more, but it is good, and I support the decision on the tyres and the drop in tax on the vehicles coming in, as it would not only be better for the average man but also for the auto dealers.”

*GEORGE NEDD: “The removal of second-hand tyres is good, and we are thankful that the tax is coming off of tyres and some vehicles, because the car dealers will drop prices, since the tyres are so expensive. The decision to ban people from bringing in cars more than 8 years

old will be better for buying parts.”

MICHAEL: “I would say (the decision) is right because the second-hand tyres are being bought for high prices, so new tyres are good. The review of the taxes on the importation of some vehicles is good, because it will be affordable to the poor people; and the eight years limit on cars coming in will be good because it will promote a modern society.”

SHERWIN ARRON: “The Government must let Guyanese live nice and comfortable. The ban on the importation of cars more than eight years (old) will be

good because it will be about modernization and it will be better to get parts.”

OWEN GREENE: “I think it will be a relief. Old tyres contribute to a lot of accidents, and it is an environmental hazard when it comes to getting rid of them. As it relates to review of taxes, once there could be a balance and let the poor men acquire a vehicle, it is great. The reduction in fuel price is a good thing, and the ban on the importation of cars above eight years (old) is good because you will get parts and so forth.”