Brian Bonitto, Editor - Overseas Publications

Jamaica's major auto dealers are elated at the Government's recent decision to roll back the Special Consumption Tax (SCT) on motor vehicle imports to the island.

The Government, by Cabinet decision, gave the dealers a reprieve on the tax for the period August 3, 2009 to March 31, 2010, to stimulate the almost-dormant industry.

Jamaica Used Car Dealers Association (JUCDA) and the Automobile Dealers Association (ADA) presidents see the move as a result of six to eight months of talks between themselves and the Government.

"It is victory for all parties involved," Kenneth Shaw, president of the JUCDA, said. "And, it is greatly appreciated."

Shaw's counterpart at the ADA, Kent LaCroix, was happy with the outcome.

"I'm pleased and happy," said LaCroix. "It's a good move by the Government and we're grateful."

Both executives believe that the Government, auto groups and consumers stand to benefit from the move.

A good time

"It's a good time for people to buy vehicles," LaCroix said. "And, consumers could save as much as $350,000, depending on the vehicle's cc rating. A high-end vehicle could amount to half-million in saving," the ADA head said.

The JUCDA top man, however, explained that not all vehicle imports would benefit from the reprieve.

"Vehicles 1600cc up would benefit," said Shaw, who has been elected for seven consecutive terms. He explained that there would be no change for trucks, trailers and backhoes.

Shaw further explained that the reduction on duty would apply to new stock, vehicles in private and open bonded facilities, as well as those at the ports.

"The Government's reduction is good for the economy as it generates spending," he added.

According to the Inland Revenue Department, the SCT is assigned to prescribed goods, including petroleum products, tobacco products and alcoholic beverages, with the tax rates varying, according to whether the item is manufactured in Jamaica or imported.