Tax exemptions on green vehicles a “chicken and an egg” situation – MP

The government’s proposal of excise tax exemption on “green” vehicles has been regarded as “a chicken and an egg situation” by Opposition Member of Parliament (MP), Irfaan Ali.

Ali, who opened the floor for the 2018 budget debates today, explained that for individuals to invest in purchasing those types of vehicles, there will have to be filling stations available in Guyana.

He explained that businessmen will not invest in filling stations unless there is a substantial amount of such vehicles in the country.

“Investors would only be encouraged to set up filling stations if there are sufficient vehicles that require such service,” he stated.

Finance Minister, Winston Jordan had proposed during his budget speech that there be an exemption of the excise tax on vehicles principally designed to accommodate LPG gas, with an engine capacity not exceeding 2000cc and not exceeding four years old from the date of manufacture to the date of importation.

Jordan also proposed exemptions on machinery and equipment from the payment of custom duties to set up refilling stations for such vehicles, as determined by the Commissioner General.

However, he said the Value Added Tax (VAT) will still be payable. Ali, in further criticising the government’s Green State Development Strategy (GSDS), contended that the “greening of the economy” has to go beyond reducing emissions and painting fences and buildings in green.

“Under the Low Carbon Development Strategy (LCDs) for instance, there is the MSED project that is designed to stimulate the business activities in low carbon sectors,” he expressed.

Ali noted too that the flagship Amaila Falls project alone would have reduced emissions by 12 megatons of carbon dioxide (CO2).

“It would take countless vehicles to produce similar results,” the parliamentarian posited.