Looking at the manufacturer’s suggested retail price (MSRP) of a vehicle, local customers could find it difficult resolving the huge difference being charged by local dealers.

For instance the MSRP price of a new 1.8 litre Toyota Corolla in the US is approximately US$20,000, the US government already collecting their duties.

Simple conversion places the cost of that vehicle at approximately J$1.72 million.

But instead, that same vehicle is offered for sale in Jamaica at a whopping J$4.3 million (US$50,000), largely blamed on duties charged by the Jamaican Government.

It’s the local duty structure that making the significant difference, dealers contend.

Essentially, the Jamaican consumer — in a depressed economy where per capita income is US$4,500 — is paying more than twice his US counterpart to acquire a similar vehicle.

Local motor vehicle dealers have long complained about Government’s high duty regime charging that it is, in fact, counterproductive.

“(The Jamaican) Government has one of the highest duty structure in our region as it relates to motor vehicles,” president of the Jamaica Used Car Dealers Association, Lynvalle Hamilton, commented recently.

“We would like the government to tell us what benefit, as it relates to revenue, has been derived from the high duty structure,” he questioned.

Hamilton’s sentiment is echoed by players in the new car industry where dealers are lamenting what they term a ridiculous duty structure.

At the recent launch of the ATL Automotive showroom in Montego Bay, ATL deputy chairman Adam Stewart called strongly for a revamp of the duty structure.

He argued that Government should also give preference to energy-efficient and environmentally-friendly vehicles.

The MRSP, typically quoted in US dollars, gives a price guide for consumers and dealers alike on the cost of a vehicle.

Corolla GLi 1.8 Litre US price: US$20,000 Jamaica price: J$4.3million