Jamaica Gas Prices

Jamaican consumers have once again been given a break in the importation of older use cars. According to the Jamaica Gleaner, the age limit of two categories of imported motor vehicles has been increased by one year. The categories are motors cards, up from four years to five years and light commercial vehicles up from five years to six years.

The Use Car Dealer Association in Jamaica seem have for the move and so will consumers as this should result in the reduction in prices but there is no real guarantee. The used car industry has taken an battering  primarily because of the downturn of the global economy in my view, but also the fallout  from the failed ponzi schemes, dent in illegal drug exports and the reduction of the age limit.

No transport plan

The age old issue of a proper transportation system in Jamaica continues to be a problem. However that really cannot be properly addressed until the is properly town and country planning. Much of Jamaica continues to be unplanned development with communities springing up all over the place with no thought on how persons will be transport to and from work.

This continues to fuel the route taxi phenomenon where cars instead of larger buses or even trains have become key part of transporting the citizen of Jamaica.

For more information visit:

• Jamaican Government increase age limit on used-car imports
• Government of Jamaica attempts to revive Used Car industry

This has been an interesting week for motorists in Jamaica, but then again being a motorist in Jamaica is always interested.  On September 9, 2009, the Government of Jamaica announced a  6 month stimulus package for the auto industries in Jamaica. 

On the back on a 60% fall in sales, new and used car dealers apparently lobbied the government for some relief and alas got it. The government is strapped for cash so anything is better than zero and with fall-off in sales it meant less revenue for the government pockets.

The details 

For motor vehicles 1000-1600 cc, the SCT of 10% becomes 0%. The results it that the overall markup do to SCT and GCT will decline about 25% from 82% to 63%. 

Vehicles under 1000 cc already of 0% SCT while high-end vehicles will see SCT reduced from 70% to 35%. In between SCT for 1600 to 2000 cc moves from 20% to 5%, and for 2000cc to 3000cc vehicles the change is from 35% to 15% resulting in aggregate reduction in taxes from 110%  to 77% and 128% to 96%

As usual there are some interesting footnotes.  Those eligible for the 20% duty concession  can now import vehicles with any allowed cc rating as the previous restriction to this category has been removed. However the ceiling on the value of the vehicle of US$25,000 remains.

My thoughts are,  this should not be bad move but there are concerns. Will person exploit this to bring more gas guzzlers into the island? What about our Oil bill and our foreign exchange problem or do we have one?  

The Portmore and other Toll users are looking for a Stimulus Plan.

n.b. Gas Prices from the refinery went down this week.

Sources

• 6 months stimulus package for new & used car sector
• Government slashes car duties