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Used car dealers at a disadvantage - Lyn
AUTO
By Patrick Foster
Friday, October 30, 2009
Newly elected president of the Used Car Dealers Association (UCDA), Ian Lyn, is calling on Government to revisit its recent reduction on import duties to make it more equitable for used car dealers without a bonded warehouse.
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| Ian Lyn |
"As it is now the reduction on Special Consumption Tax applies only to vehicles that are in-bond. It does not apply to vehicles that are duty paid," Lyn told Auto early this week. He charged that approximately 60 per cent of used car dealers do not operate a bonded warehouse and are asked to pay their duties up-front at the rates charged before Government's reduction.
"It is very unfair," Lyn declared.
Government in early September, announced an adjustment in the SCT charged on motor vehicle imports, which saw aggregate duty being reduced to as low as 63 per cent from 82 per cent on some categories of vehicles.
But according to Lyn, as it now turns out the arrangement favours new car dealers, to the detriment of many dealers importing used vehicles.
Lyn is insisting that Government's reduction in SCT should be applied to all vehicles imported before September 11, rather than only those held in bonded warehouses.
"The used car dealers without a bonded warehouse are at a disadvantage because they are being asked to pay duties at the old rates," Lyn said.
At the same time, Lyn said that the UCDA would also be pushing for a reduction of import duties to 30 per cent on all vehicles rated 1600cc and below.
"That should encourage people to buy those vehicles and thereby reduce gasoline and foreign exchange demand," he contended.
Lyn, general manager of New Line Motors, was elected president of the UCDA at the association's annual general meeting held last Thursday at the Pegasus Hotel in Kingston.
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