WASHINGTON, DC – The import duty on electric vehicles has been reduced from 30 percent to 10 percent, and purchasers of those vehicles will not have to pay license fees over the next five years.
JPS electric vehicle. (Image courtesy of JPS)The House of Representatives on Tuesday approved the Customs Tariff (Revision) (Amendment) (No. 2), Resolution, 2022, and the Road Traffic (License Duties) Order, 2022, to give effect to the measures.
Minister of Finance and the Public Service, Dr. Nigel Clarke, advised that the lower duty rates and the elimination of the license fee requirement apply to electric vehicles that are three years old or less at the time of importation.
He said that the measures, which took effect on July 14, are supporting the country’s transition from a high dependence on petroleum for motor vehicles by making it more affordable for Jamaicans to acquire electric vehicles.
He said that the Government is serious about ensuring a clean energy future.
“The electric vehicle technologies are undergoing rapid change, and so the public interest is best served by ensuring that the latest technologies are preferred over older technologies. Having 10-year-old electric vehicles in the country doesn’t help anybody; we need the latest electric vehicles at any point in time,” Minister Clark contended.
The Minister told the House that the implementation of the measures came out of discussions with the Ministry of Science, Energy and Technology, the Inter-American Development Bank (IDB) and other stakeholders, to see how best to encourage persons to purchase electric vehicles.
He said it was determined that the reduction in duty and removal of license fees would be the best way to incentivize the transition.
The Finance Minister noted that duties on motor vehicles are a major source of government revenue, and so “the way we treat with the reduction of duties for electric vehicles has to be considered very carefully because we couldn’t afford to completely cannibalize all of that revenue. However, at the same time, we must make a start in the transition”.
“We recognize that these are not panaceas, but they represent a significant concession to facilitate Jamaicans in the acquisition of battery electric vehicles,” he added.
