Changes to Customs Duty for motorcycle imports

• Executive Council approves changes to Customs Duty for motorcycle imports
• Changes to come into effect from today, Friday 14 February 2020
• The revised duty will be charged at a flat rate for four different categories based on emissions and engine size

Changes to the Customs Duty for motorcycle imports to be charged at a flat rate for four different categories have been approved by Executive Council and will come into effect from today, Friday 14 February 2020.  

The four categories based on emissions and engine size are:

• Emissions 1g CO₂/km or less: £200
• Emissions greater than 1g CO₂/km – 250 cc or smaller: £350
• Emissions greater than 1g CO₂/km – 251 cc – 600 cc: £500
• Emissions greater than 1g CO₂/km – larger than 600 cc: £700

These changes have been made in response to feedback received from buyers of smaller, low cost motorcycles following the change in customs duty, on both motorcycles and cars, from a percentage of the value to a fixed rate based on emissions on 1 December 2019.

For motorcycles, the revised duty included two bands: one for motorcycles with emissions 1 g CO₂/km or lower and one for all other motorcycles. SHG evaluated alternative options that would incentivise low-emission motorcycles while addressing concerns about the impacts of having the same flat rate duty applied to all motorcycles.

Emission rates for motorcycles are not well-published. However, in other jurisdictions, engine size is used as a proxy for emissions for the purposes of taxation. In other words, motorcycles with smaller engines also tend to have lower emissions and are charged lower taxes as a result.

This change will make the method for determining Customs Duty for motorcycles more consistent with the method used for cars and address concerns about fairness of the previous system while continuing to promote environmentally friendly alternatives, consistent with the national goal to be ‘Altogether Greener’.

#StHelena #CustomsDuty #AltogetherGreener

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SHG

14 February 2020