Parliament adjusts excise tax to encourage import and trading of older vehicles

The Parliament of Dominica has recently approved the Excise Tax Amendment for 2025 for the import of old vehicles and to encourage domestic trading of used vehicles, by adjusting the charges to be paid at the Customs.

Finance Minister Dr. Irving McIntyre made the announcement during Parliament this week.

In his address during the 2025-2026 National Budget he said motor vehicles manufactured 5 years or less remains at 1 percent of the CIF value; motor vehicles manufactured more than 5 years but up to 10 years remains at $3,000; motor vehicles manufactured more than 10 years but up to 15 years $4,000 [and] motor vehicles manufactured more than 15 years $10,000.

In addition, Dr. McIntyre stated that the excise tax rate on motor vehicles manufactured 10 years or less which presently attract 28 percent excise tax, will be reduced to 25 percent.

“The population is encouraged to purchase newer vehicles with less than 10 years,” he encouraged. “What it does Mr. Speaker, these vehicles will be functioning better…and in terms of the carbon emissions it would be much less.”

Dr. McIntyre explained that there will be more efficient vehicles, less carbon emissions, less maintenance which will result in less cost to the owners of these vehicles.

Furthermore,  he also mentioned in this resolution the whole idea of purchasing vehicles locally.

“So Mr. Speaker from all points of view this is an excellent resolution we brought before the house and since both sides are in agreement I think this is a great move in the right directions, from an environment point of view, from a health point of view, from an accident and safety point of view in terms of purchasing more vehicles locally, this is a win-win for the Commonwealth of Dominica,” he stated.

In the meantime, the government passed a Bill in Parliament for the reintroduction of the Highway Maintenance Levy at $100 for private vehicles and $50.00 for motorcycles.

A Highway Maintenance Levy was first introduced in Dominica in Fiscal Year 2015/16. That Levy generated $10.4 million up to the time it was repealed in Fiscal Year 2022/23.

Of the $10.4 million, $3.1 million was spent on the rehabilitation of Charles Avenue, while the remaining $7.3 million was used to fund routine road maintenance.

“The Bill is intended to formally legislate the reinstatement of the Highway Maintenance Levy effective 1 st October,2025,” Dr. McIntyre said. “The previous Highway Levy was repealed in August of 2022 when oil prices escalated due to the commencement of the Russia-Ukraine war which was done to bring relief to consumers who were at the time experiencing a sharp increase in fuel prices and the government found it imperative to provide relief.”

According to him, the price of fuel has since gotten back to normal and bearing in mind the extensive investment that the government is making in road infrastructure and maintenance, it has become necessary to restore the levy.

“The amount to be paid for motorcycles, private vehicles and small commercial vehicles remain the same as before,” he stated.

However, Dr. McIntyre noted that there are slight increases to the rates for large commercial vehicles as well as trucks, dumpers and trailers, bearing in mind their heavy impact on the road.

He went on to state that commercial vehicles, truckers dumpers and trailers are as follow;

“Less than 6,721 pounds $150, more than 6,720 pounds but less than 8,961 pounds $200, more than 8,960 pounds, but less than 13,441 pounds $250, more than 13,440 pounds, but less than 20,161 pounds $300, more than 20,160 pounds, but less than 26,881 pounds $350 and  more than 26,880 pounds, but less than 33,601 pound $400, more than 33,600 pounds $500,” Dr. McIntyre revealed.

He encouraged all vehicle owners to make this very small contribution to national-building on time.