The Customs Department says there has been no change in the "rate" for General Consumption Tax (GCT) payable by motor vehicle importers under the 'Revised Duty Regime', implemented September 1.

The new regime does not relate to private importers of motor vehicles, for whom "there has been no change to the tax payment structure", said customs, only commercial dealers.

Prior to the change, used and new car dealers were required to pay a GCT rate of 16.5 per cent to the Customs Department, on the C78 Commercial Import Entry and the C78 Ex-Warehouse Entry, respectively, on all categories of vehicles.

On the sale of the vehicle, the dealer was further required to pay to the Inland Revenue Department, the difference between the rate paid on the entry and the GCT calculated on the selling price at the rate specified in the First Schedule of the GCT Act.

With the changes, dealers will no longer pay a GCT rate of 16.5 per cent at the point of entry, but will pay, depending on the category of vehicle, the rate set out in 'Group 1, Part 1' of the First Schedule to the GCT Act.

The insert offers an example in relation to a motor vehicle of 1000cc to 1500cc:

On the sale of the vehicle, the dealer is still obliged to make GCT payments to the Inland Revenue Department.

No increase in GCT

"In essence, there is no increase in the GCT rate on motor vehicles," said Customs.

"The only change relates to the fact that dealers will now be required to pay a greater portion of the GCT at the point of entry."

More information is available at www.jacustoms.com, and details on the changes have been published in the Jamaica Gazette Supplement, Proclamations, Rules and Regulations CXXIX, No. 83", dated Tuesday August 22, 2006, regarding the 'Provisional Collection of Tax (General Consumption Tax) (No.12) Order, 2006'.

"This is to be read in conjunction with the General Consumption Tax Act," said Customs.

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