Duties on alcoholic, non-alcoholic beverages, tobacco, motor vehicles up

The excise duties on alcoholic and non-alcoholic beverages, tobacco and motor vehicles have increased.{{more}}

The proposed increase will be effective February 1, 2012; however, the increase in excise on vehicles will be implemented from May 1, to allow persons who may have already ordered vehicles to get them at the old rates, Prime Minister Dr Ralph Gonsalves explained.

He made the announcement during 2012 Budget speech yesterday, January 9.

“Accordingly, regular adjustments are required to the rates in order to maintain the real value of the revenues, particularly for those items with specified rates,” he explained.

He contended that the items selected for an increase in the excise tax were connected to the quest to improve health and wellness.

“Others, namely motor vehicles, relate to the need for a greater contribution towards road repair,” Gonsalves said.

The modern excise tax was introduced in 2008 to supplement the Value Added Tax by applying to certain goods that were highly taxed, including petroleum products, alcoholic beverages, tobacco, motor vehicles and some other goods the prime minister explained.