May 13, 2010 News
“Taxes are calculated based on the value of the car, engine size (CC) and year.” This was according to a broker, Sean Holder, from Customs and Trade Administrations who said that this is the law according to the Excise Tax Act.
Vehicles less than four years are considered new, he said. Part of the evaluation is based on the number of doors that are on the automobile. Some cars such as sports cars and coupes have two doors. Others are enclosed with four doors such as sedans. These vehicles are estimated according to the value of the import duty, purchase tax (excise tax) and VAT.
As long as the engine size is below 1500 CC, the import duty is 45 percent, excise tax is 10 percent and VAT is 16 percent. If the engine is above 1500 CC, the import duty is 45 percent, the excise tax is 30 percent and VAT is 16 percent.
If a car that was manufactured in 2009 and its engine size is smaller than 2000 CC, whether reconditioned or not since it could have been in an accident before being shipped to Guyana, then that car would attract an import duty of 45 percent an excise tax of 10 percent and the VAT which is already set at 16 percent.
On the other hand, if a vehicle that is a 2009 model and has an engine size bigger than 2000 CC, the import duty would be the same 45 percent. On the contrary, the excise tax would be in excess of 110 percent of the vehicle’s cost before the 16 percent VAT is included.
The duty of an automobile is “based on cost CC and year of the new vehicle” according to the Customs official.
As long as a car is four years or older, the duty is calculated based on the capacity and a value that is known as the “Flat Rate.” This Flat Rate is applicable to cars that are less than 1000 CC.
However, if the vehicle has an engine size that is less than 1000 CC the Flat Rate would be US$4,200. If it is above the 1000 CC size then the Flat Rate would be US $4,300. An engine size that is between 1500 CC and 1800 CC would attract a Flat Rate of US$6,000. If the automobile is over 1800 CC but less than 2000 CC the Flat Rate would be US$6,500 and if the vehicle is between 2000 CC and 3000 CC then the Flat Rate would be US $13,500.
Any car whose engine is above 3000 CC the Flat Rate would be valued at US $14,500. In addition, the excise tax would be at one hundred percent of the vehicle’s cost without the 16 percent VAT.
Pertaining to spare parts for vehicles such as doors, engines, bonnets, half cut roofs, the assessment would be according to the freight charges (cost to ship item and insurance), import duty at 30 percent and 16 percent in VAT.
The lights and wipers for automobiles would attract an import duty rate of 25 percent along with 16 percent VAT. Nevertheless, an engine would have an import duty of 10 percent along with the VAT’s percentage rate.
All automobiles have their charges that are according to their different categorizations and Commodity Codes. The Customs Broker pointed out that “duties are charged according to the items and the cost of items classified in certain areas” since each item has its “own Classification and Rate of Duty.”
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