Virus hinders expansion

THE Covid-19 situation has not allowed expansion of the market on reduction on imported vehicles as yet, according to car dealer Ela Motors.
Chief executive officer Mitsuyoshi Okutsu in an update said it was difficult to judge the exact impact of the duty reduction because the market condition was always changing.
The Government in its 2020 Budget announced the reduction of import excise on imported brand new and used vehicles to make them more affordable.
“The market condition is always changing with the latest social situation apart from duty movements. However, I think duty reduction has seen some good impact for the market,” he said.
“If we compare Toyota sales year-to-date (Jan-July) with the last year, our sales volume is almost the same level as the last year in spite of the state of emergency in March-June or the recent lockdown,” he said.
“In other words, the Covid-19 situation has not allowed expansion of the market by duty reduction yet.”
Okutsu told The National yesterday that the continuous strong government initiatives to control
the spread of Covid-19 was important.
“We all are under the serious situation of Covid-19, so that is very difficult to forecast the market, but I hope strong leadership of the government and better recognition and self-prevention of the PNG people today will calm down the situation soon,” he said.
The Excise Tariff (2020 Budgetary) (Amendments) Bill 2019 which took effect on Jan 1, 2020 included: new cars (60 per cent to 20 per cent), used cars (80 per cent to 20 per cent); Sports and racing cars: new cars (110 per cent to 40 per cent), used cars (120 per cent to 40 per cent).