Importing private vehicles costs the country around US$400 million in foreign exchange annually, according to the Trade Ministry.
In a media release sent this afternoon, it defends the removal of tax concessions on these vehicles from October 20th 2020.
It also notes that the permissible age of imported foreign used cars will be reduced to three years, quotas for importation of used cars will be reduced by 30% and a quota system will be introduced for new cars – all in January 2021.
The Ministry reiterates these interventions seek to reduce the demand for motor vehicles and foreign exchange leakage.
It claims that over 25,000 motor vehicles are imported annually with an approximate value of TT$2.5 billion and sees the loss of scarce forex.
The Ministry is urging foreign and new car dealers to collaborate with the state to make the announced adjustments.