by Linda Straker
- Ban on importation of vehicles exceeding 10 years effective 31 December 2020
- 50% duty and tax concession on importation of electric and hybrid vehicles
- Ban to assist Grenada Solid Waste Management Authority to manage derelict vehicles
Government has delayed the enforcement of a ban on the importation of vehicles exceeding 10 years. At the time of the announcement, the ban was described as a measure aimed at protecting the environment.
“Cabinet has approved the extension on the banning of vehicles over 10 years. We have extended that period and that date will be now 31 December 2020. This was given consideration based on fact that we been going through a Covid period and the fact that this has posed many logistical challenges to many individuals,” Health Minister, Nickolas Steele, disclosed to media in the post-cabinet briefing held on 15 September 2020.
The ban was scheduled to take effect as of 1 July 2020.
Steele said that despite the delay of the environmental protection measure, the Cabinet has approved implementing a 50% duty and tax concession on the importation of electric and hybrid vehicles. “Cabinet has also decided that it will pass legislation that will encourage the importation of electric and hybrid vehicles. It was agreed that electric and hybrid vehicles will receive a 50% concession on all the imports duties and taxes for them based on the CIF.” He confirmed the concession will take effect at the end of September 2020.
A hybrid electric vehicle is a vehicle that combines a conventional internal combustion engine system with an electric propulsion system. The presence of the electric powertrain is intended to achieve either better fuel economy than a conventional vehicle, or better performance.
The plan to restrict the ban on vehicles older than 10 years was announced in the 2020 Budget by Prime Minister and Minister for Finance, Dr Keith Mitchell. “The protection of the environment is among the top priorities of the Government of Grenada as it seeks to lower carbon emissions and reduce the burden on the Grenada Solid Waste Management [Authority] to dispose of and manage the growing number of derelict vehicles that are abandoned alongside public roadways or transported to the landfill which is now close to full capacity,” stated a government news release issued in early March before action was taken to control and contain the spread of Covid-19.
Grenada has seen an increase in the importation of vehicles in recent years, with manufacturing dates that exceed 5 years. “While this has realised additional revenue from duties and taxes and downstream businesses in parts and services, policymakers believe its long-term impact on the economy and environment seem to outweigh the immediate benefits,” the release said.