CHAIRMAN of the ATL Group, Gordon ‘Butch’ Stewart is advocating the implementation of a value system in clearing motor vehicles imported into the island.

According to Stewart, the present system where engine sizes and the type of vehicle dictate the duties charged, is yet another complicated government policy that hampers business activity while pushing up costs.

Stewart was speaking Tuesday at the launch of this year’s Observer Business Leader Awards held at the newspaper’s Beechwood Avenue headquarters in Kingston.

Stewart, whose ATL Automotive is representative for Honda, Land Rover, Jaguar, VW and Audi vehicles in Jamaica, compared the local system with that of Caribbean neighbours, The Bahamas.

“It doesn’t matter whether it is 2000cc or 5000cc, it doesn’t matter, it goes by value,” Stewart said of the The Bahamas.

He contended that locally the system would become more fluent and easier to monitor if customs duties were calculated only on the value of the vehicles being imported.

“Whether it’s a V8 engine or V12 engine it’s fine, keep it simple,” said Stewart.

Currently in Jamaica motor vehicle import duties for cars and SUVs are calculated on a tiered system based on engine size. In addition, diesel vehicles are affixed a lower duty rate than gasoline-powered vehicles, except those rated at 1000cc and below.

According to information on the Jamaica Customs Department website, motor vehicle dealers are charged aggregate duty of 74 per cent for gasoline and diesel vehicles with engines rated at 1000cc and under.

Gasoline vehicles between 1000cc and 1600cc attract an aggregate 91.15 per cent duty, while diesel vehicles remain at 74 per cent.

Above 1600cc but below 2000cc, gasoline vehicles attract approximately 117 per cent duties and diesel vehicles are at 99.72 per cent.

Gasoline vehicles above 3000cc attract 194.1 per cent duty.

Duties on motor buses and pick-up trucks are, however, rated using a completely different set of numbers.

Stewart contended that there was bound to be problems “once you start complicating the engine size”.

“So many of our policies need revision, some are so complicated you need a genius of a customs broker,” he commented.