Duty on vehicles to be reduced

PEOPLE wanting to buy imported vehicles from Jan 1, 2020, will pay much less excise duty – to make them more affordable to everyone.
The massive reduction of 60 per cent applies to new and reconditioned vehicles.
For imported vehicles currently attracting 100 per cent or more duty, buyers will be from Jan 1, 2020 be charged only 40 per cent duty on the cost.
For imported vehicles currently attracting less than 100 per cent duty, buyers will pay only 20 per cent on the cost.
Treasurer Ian Ling-Stuckey in tabling the 2020 national budget, said the reduction of duty on imported vehicles was to make them more affordable to everyone.
He also announced a hike in taxes on beer and tobacco from Jan 1.
He said drinks that contained alcohol produced locally would have to pay an extra K10 on top of the K50 they pay now.
The Government will apply a one-off 10 per cent increase to excise for tobacco and alcohol and lift the suspension on alcohol and tobacco excise indexation rate, and revert to 5 per cent.
Through the Excise Tariff (2020 Budget) Amendment Bill 2019, the Government will continue to apply the second excise tier in the tobacco excise to combat the illicit tobacco market.
The Government will however provide relief to the alcohol and tobacco industry by temporarily suspending the six-monthly excise indexation for alcohol and tobacco.
It will regain this concession by applying the one-off 10 per cent increase on excise for alcohol and tobacco starting from Dec 1, 2019 to May 31, 2020 and lift the suspension of excise indexation and revert to the 5 per cent biannually starting June 1, 2020.