Guyana’s Finance Minister, Dr. Ashni Singh said Monday that the government plans to remove the 14% value added tax (VAT) currently being charged for importation of new electric vehicles (EV).
New, in this context, means the vehicles are less than four years old. Older EVs are already importable tax-free. The 14% VAT on newer models is the last remaining tax on EVs.
Dr. Singh said the measure to remove VAT from new EV imports is in keeping with the government’s commitment to develop the country along a low carbon pathway.
Additionally, he said the government would support businesses who decide to invest in more environmentally friendly vehicles by increasing the write-down allowance applicable to all EVs to 50% annually.
The Guyana Energy Agency (GEA) had ordered six EV charging stations from Flash Motors Company Limited of Jamaica, last year. Those are expected to arrive in February for placement along the coast.
To prepare locals for the automotive transition, the government has been facilitating training for Guyanese auto-technicians in EV maintenance and repairs.
Guyana is at the very beginning of its electric vehicle transition. The proposal was made in Dr. Singh’s presentation of Guyana’s budget for the fiscal year 2023. Parliamentarians will debate the package for a whole week starting on Monday. The governing administration has a comfortable majority in the House. So, the budget measures are expected to pass with minimal or no amendments.