The implementation of the changes to the motor vehicle tax structure has been pushed back to May 12.

The new rate structure, which was announced by Finance Minister Audley Shaw during the opening of the Budget Debate in Parliament last month, was originally scheduled to take effect today.

Shaw had proposed a stratified system of ad valorem taxes on imported vehicles, ranging from 10 to 70 per cent, depending on the size of their engines. Diesel engines, however, would get a 10 percentage point reduction on the ad valorem tax for each category.

The finance ministry said yesterday that the implementation of those changes has been postponed to accommodate further discussion with stakeholders in the motor industry.

"Dialogue will continue with the stakeholders to finalise arrangements upon implementation," a ministry release stated.

Move to simplify

"The intent of the proposed measure is to simplify the duty regime for motor vehicles by reducing the number of GCT (General Consumption Tax) rates and returning to a single, non-discriminatory rate system between dealers and individuals," it continued.

President of the Automobile Dealers Association, Kent LaCroix, welcomed the announcement. He said he was looking forward to more discussions with the Government.

"There are several explanations that are still outstanding, and one hopes that they will be done before the implementation date," he said.

LaCroix wants the Government to explain, for example, how the cost of the vehicles will be calculated. "We have been advised that the process (for calculation) is different but nobody can categorically state how it is different," he said.