VP hints at vehicle import tax reform

…says “we can allow for a more liberal system”

Vice President (VP) Dr Bharrat Jagdeo has hinted at significant future reforms to Guyana’s vehicle import taxation system, saying the Government is open to reviewing existing duties and introducing a more liberal policy framework.
Speaking at a recent People’s Progressive Party Civic (PPP/C) press conference, Jagdeo acknowledged that while the administration has already implemented several duty reductions, more could be done, particularly as the country’s road infrastructure continues to evolve.
“We reduced duties on lots of things since we got into office, including vehicles. Their duties are still high. We will probably put them on the review in the next term in office, so they will come down. But as the road network expands to, I think we can allow a more liberal taxation system on the vehicle,” Jagdeo said.
The VP explained that any additional vehicle tax reforms would be balanced with ongoing investments in road safety, traffic regulation, and sustainable development.
The anticipated shift toward a more liberal taxation model aligns with the Government’s broader development strategy – one that seeks to modernise transportation while ensuring fairness and sustainability.
Jagdeo was careful to note that while the Government is willing to act, any substantial adjustments would likely occur in the next term of office.
In fact, he emphasised that the policy currently in place does not discriminate based on the origin of the vehicle, noting that all countries face the same tax rates.
“This is not discriminatory. It’s applied to vehicles from any part of the world. If you were thinking about whether it’s linked, maybe, I don’t know if it’s that you’re thinking about its link to the US (United States), but it’s from Japan, it’s from the US, it’s from Europe, the same tax rates that you pay,” he added.
The VP’s comments build on a series of reforms that the Government has introduced in recent years to make vehicles more affordable, stimulate economic growth, and promote environmentally friendly transportation.
In the 2025 National Budget, the Government removed all taxes, both Customs Duty and Value Added Tax (VAT) on electric vehicles. This measure was introduced to encourage the use of cleaner, greener transportation and reduce the country’s carbon footprint. Additionally, the Government introduced a 50 per cent write-down allowance on electric vehicles as a further incentive for purchase.
Meanwhile, in 2023, the Government reduced the import duty on new motor vehicles below 1500cc from 45 per cent to 35 per cent. This change was aimed at lowering the cost of importing such vehicles, providing average savings of approximately $200,000 per vehicle.
Also in 2023, the Government replaced the previous variable tax rate with a flat tax of $800,000 for used vehicles under 1500cc. This reform was intended to create predictability for importers and resulted in an estimated $300,000 reduction in overall import costs.
Jagdeo noted that these changes are not just fiscal measures—they are part of a larger strategic vision tied to infrastructural development. As new highways, bridges, and roadways open up, especially in emerging urban zones and hinterland communities, access to affordable and reliable vehicles becomes increasingly important for both economic and social mobility.