BUDGET 2026: Gov’t reducing cost of vehicle ownership 

Finance Minister Dr Ashni Singh has highlighted plans to reduce the cost of vehicle ownership, noting that new measures to do so include removing Value-Added Tax (VAT) on vehicles below 1500 cc.

The Finance Minister announced these measures during his presentation of the 2026 National Budget. He also said the government will remove VAT on hybrid motor vehicles below 2000 cc, building on the 2023 measure of removing VAT on new electric vehicles.

Moreover, import duties and taxes on ATVs for all categories will be removed; all taxes for outboard engines up to 150 horsepower will be axed too.

Additionally, he confirmed that a flat tax of $2 million on double-cab pick-ups less than 2,000cc and $3 million on double-cab pick-ups 2,000cc and 2,500cc will be introduced.