The Jamaica Observer reports that in Jamaica, “an onerous tax regime has forced Jamaican consumers to fork out exorbitant amounts of money for motor vehicle purchases,” saying that local car prices are among the highest in the region.
The state charges 63.5 per cent to 194 per cent of the Cost, Insurance and Freight (CIF) value of motor vehicles being shipped into the country. These taxes are a complicated mix of a Custom Duty, Special Consumption Tax (SCT), General Consumption Tax (GCT), Environmental Levy (ENVL), Custom User Fee (CUF) and other charges.
President of the Automobile Dealers Association Kent LaCroix claims that the government is making too much money on vehicles and that more and more consumers are unable to pay these high duties. According to LaCroix, dealers only make a modest 10 to 12 per cent margin on motor vehicles. Jamaica Used Car Dealers Association (JUCDA) President Lynvalle Hamilton also says that the 40 per cent custom duties imposed by the Jamaican government are the highest in the region, making cars beyond the reach of the average Jamaican consumer.
Industry trends reveal that local consumers are becoming increasingly unable to afford motor cars at these high prices. Sales reports from the two major segments of the industry —new and used cars—“paint a daunting picture.” Industry insiders say that Government’s tax regime is killing the local automobile sector and is in fact depriving the state coffers of additional revenues.
For full article, see http://www.jamaicaobserver.com/business/Why-you-pay-so-much-for-cars-in-Ja_8250752#ixzz19Lo37sL7
