ST GEORGE’S, Grenada (CMC) — The Grenada government has confirmed that it has been collecting an increase in vehicular licence fees without the necessary approval by Parliament.

Opposition Leader Dr Keith Mitchell had raised the illegality of the payment while speaking on the resolution to approve the vehicle licensing fee by EC$5 (One EC dollar=US$0.37 cents) that had originally been announced during the 2024 budget presentation in December last year.

“The fact is drivers have been paying this EC$50 for some time without the resolution getting the approval of Parliament… so you may have to do this retroactively otherwise, if this is given assent with today’s date and it is implemented as per the date, then you may have to return the EC$50 to everybody who already paid,” Mitchell told Parliament.

Finance Minister Dennis Cornwall, in acknowledging the discrepancy, said that a credit may have to be given to vehicle owners who have already paid the increase.

“While some of the taxpayers would have already paid that EC$50 and we did not have in place the resolution, we have agreed that we will give a credit to the taxpayers who have already paid so that nobody will actually be affected unduly.

“We are making sure that going forward in the next cycle [of the] motor vehicle payment, the credit is given to the taxpayer,” said Cornwall, reminding legislators that motor vehicle licensing fees are collected during the first quarter of the year.

Cornwall said that the government is projecting to raise approximately EC$2.6 million from the increase and that the revenue would be used to assist with road maintenance throughout the country.

Prime Minister Dickon Mitchell, who presented the resolution for debate and approval, said that the increase had become necessary to ensure that the Ministry of Infrastructure takes prudent measures to ensure that government has everything necessary to treat with the road infrastructure.

“This is a modest request for road users… they money will be well accounted for, will be well-spent, could be accountable and that all of the citizens of Grenada will benefit from improved road infrastructure in the coming months and years,” he told Parliament.