PRESIDENT of the Jamaica Used Car Dealers Association (JUCDA), Lynvalle Hamilton, yesterday charged that Government owes members of the industry millions of dollars in tax refunds, which they are unable to collect.

Hamilton accused Government of owing one used car dealer more than $5 million adding that there were more than 70 active dealers facing a similar predicament.

“If I were to estimate the amount owing to the industry it is easily over $1 billion,” he told Auto.

According to Hamilton while general consumption tax is set at 17.5 per cent, used car dealers are required to pay 22.5 per cent up front to clear vehicles with the agreement that any difference upon selling is refunded by Government.

He explained dealers charge GCT at 17.5 per cent when a vehicle is sold, with Government owing any difference that might accrue.

However, the JUCDA president told Auto yesterday that recovering those amounts from Government is proving almost impossible.

“Whenever dealers request the refund they (Tax Audit and Assessment Department) say an audit has to be done and that takes forever,” a disgusted Hamilton charged.

“They are borrowing money from us without our permission,” he said.

Hamilton also contends that the five per cent difference in GCT charge is too high, arguing that a two-to-three per cent variance would be more equitable.

“I cannot understand why government has done this it makes no sense. It is just bullyism,” he said.

In addition, Hamilton charged that a recent promise by the industry and commerce ministry to provide a draft of the revised Motor Vehicle Policy (MVP) has not been forthcoming and is now more than three weeks overdue.

Hamilton said permanent secretary in the commerce ministry Reginald Budhan assured the association almost a month ago that a draft would be made available for the members.

When contacted yesterday, Budhan said that the MVP draft was with other government agencies, such as the ministries of finance and transport and Works, awaiting their approval.

“We are now consulting with other government agencies…we have to give people a chance to sign off on it,” he said.

Addressing the issue of un-refunded tax amounts Budhan said that the Ministry of Finance had to give that information.

“I cannot speak on that,” he told Auto.