THERE WAS a last-minute rush yesterday on tax offices throughout the island, as motorists attempted to avoid higher motor vehicle licence fees which take effect today.
But, some motorists were reportedly turned away from the collectorates, after it was discovered that their licences had not yet expired.
The 33 per cent increase in all categories of motor vehicle licences are part of a new round of taxes announced on December 17 by Omar Davies, Finance and Planning Minister.
The new taxes are aimed at raising $205 million in revenues to help finance the $13.5 billion increase in the Supplementary Estimates. Dr. Davies tabled the First Supplementary Estimates in the House of Representatives on December 10 and had them examined the following Tuesday at a sitting of the Standing Finance Committee.
Promised legislation aimed at improving tax compliance is expected to be fast-tracked through the Parliament this month. This is aimed at raising an additional $1.1 billion.
Dr. Davies said the legislative amendments would include provisions for the recovery of taxes from third parties, amendments to the GCT Act, and tax exemptions.
The increased taxes cover motor vehicle licences and examination fees, gun licences, as well as more stringent penalties for traffic violations, Customs and income tax breaches.
Last increased in 1999, motor vehicle fees have been increased by 33 per cent in all categories. They now range from a low of $700 a year in the motorcycle category to a high of $8,000 for heavy-duty trucks and tractors.
Firearm dealers have also been targeted. Their annual licence now costs $10,000, up from $2,500. Firearm users will now pay $3,000 which represents a 100 per cent increase and spirit licences now range from $1,000 to $15,000.
The Finance Minister has not yet indicated how the other $12 billion would be sourced.
