THE Government has reduced from 20 to 10 per cent the import duty for e-bikes and provided an exemption from payment of the annual licence fee for the next five years, as was done two years ago for electric vehicles (EVs).

The Administration had previously moved the duty on e-cars from 30 to 10 per cent.

Parliament on Tuesday approved two resolutions — the Customs Tariff (Revision) (Amendment) Resolution 2024, and the Road Traffic (Licence Duties) Order, Resolution 2024 — which allow for the new duty regime on e-bikes.

Newly minted Finance and Public Service Minister Fayval Williams, who moved the resolutions, said the regime, which will be in place from April 1, 2024 to March 31, 2029, apply to e-bikes that are three years old or less since the date of manufacture at the time of importation.

She said this move follows on Prime Minister Andrew Holness’ presentation during the budget debate last year when he had indicated the intention of the Government to provide similar incentives for the operation of e-bikes as were previously accorded for e-cars generally.

“In his address, the prime minister noted that Jamaica developed an electric vehicle strategic framework as well as the governing fiscal policy in 2022. When these were approved by Cabinet and the order governing importation of electric vehicles was issued, it restricted importation to cars and SUVs. The Government will be removing that restriction to include a wider range, including electric bikes. And we’re doing it now,” she said.

Williams said that ultimately the measures form part of the Administration’s efforts to mitigate climate change impacts by reducing greenhouse gas emissions.

“This incentive goes a long way in helping to reduce tailpipe emissions in keeping with Jamaica’s transition to ensuring a clean energy future,” she said.

The finance minister noted that in addition to zero emissions, e-bikes save money on maintenance and it is a big benefit to society in that there will be significant noise reduction using an e-bike versus the internal combustion engine bikes.

“This amendment continues to show Jamaica’s strong commitment to ensuring that we do our part in fixing the pressing global issue of climate change. It was the World Health Organization (WHO) that said climate change is the greatest threat to global health. We will continue to do our part to mitigate the harmful impact,” she said.

In response, Opposition spokesperson on industry, investment and global logistics Anthony Hylton said he was in full support of the new regime.

“The Opposition supports this effort…both sides are…at one on the need for climate change action, climate justice and these resolutions bear concrete evidence of the support that the Opposition will give to and has given to the efforts in this regard. And so both the amendment to the resolution and the order are supported,” he said.

Hylton, however, raised an issue with the Customs Resolution, which he said is a 1972 document which needs to be modernised.

“What it speaks to is an urgency of bringing forward to this House the regulations to the 2024 Customs Act — a brand new Act that really needs to come, and the regulation needs to come to this House as soon as is practicable. It is an advanced and modern piece of legislation, that will assist the country in its ambitions to become a logistics hub and to be much more efficient at the port and therefore, I’m looking forward to the regulations being brought here as soon as possible to complete and to put [forward] what we believe is necessary and urgent,” he said.

— Alecia Smith