People whose current vehicle shipments do not meet the May 20 deadline of the moratorium on luxury vehicle tax can seek a tax waiver from Board of Inland Revenue (BIR), Finance Minister Colm Imbert said yesterday.
Speaking in the Senate on an order to effect the 50 per cent increase on tax on luxury vehicles, Imbert noted when he had announced the moratorium on the tax on April 8, the six-week period ran from then to May 20.
That involves the six-week period which ships take to come to T&T from Japan, with two weeks added for off-loading.
When he debated the order in the Lower House on Monday he gave a May 20 date as the date by which the moratorium would end.
Yesterday, in the Senate, Imbert said after he gave May 20 as the deadline for the moratorium, he was contacted by someone seeking to have the concession extended beyond May 20. He said they told him their shipment would not get to T&T in time to qualify for moratorium.
He said those whose shipments, due to unforseen circumstances, arrived after the May 20 date when the moratorium ended, could try and seek the tax waiver from the BIR, on a case-by-case basis.
Imbert, who said the tax could raise the price of an Audi by $128,000, added it was implemented to try and change social behaviour. He said Government would also be approving other types of taxes to change social behaviour, such as to encourage farming and fishing.
He said Government would bring an order to Parliament next month to exempt from tax farming equipment and fishing boats.
Imbert warned that Agriculture Ministry officers would be vigilant to ensure people did not abuse the situation since, he said, it had been noted that some abused the current tax concessions on farming vehicles and boats, using them for pleasure purposes rather than farming and fishing.
Imbert admitted Government would have to wait and see how upper-bracket consumers responded to the luxury vehicle tax measure to see how much revenue the measure earned.
He said he did not want to mislead anyone and say it would raise millions. He added it may balance, or less people may buy luxury cars, but Government would have to wait and see.
Opposition Senator Wade Mark accused Imbert of being a “singer” as he kept changing his tune often. Mark said Imbert had said the tax was to earn revenue but was now saying it was to change social behaviour.
“What’s the real story? He is now realising that measure won’t generate the type of revenue he anticipated. So they are merely tinkering with the system,” Mark added.