NEW car dealers have been thrown a major lifeline as the Government has acted on their complaints that the 100 per cent bond they pay on duties ties up too much of their working capital.

“As a Government, we listened to the industry; instead of a 100 per cent bond against the duty, we have reduced that to 20 per cent,” Minister of Finance Fayval Williams said as she opened the 2025/26 Budget Debate at Gordon House on Tuesday.

She noted that this will free up businesses, allowing them to expand and hire more people while contributing to economic growth.

Williams shared that Jamaica imported 50,786 motor vehicles, worth $81 billion, in 2022 and that the duties levied were between 67 per cent and 88 per cent of the value of each vehicle.

“If you assume the lowest duty, you can see that the capital tied up against the duties is significant,” Williams said, adding that the decision to lower the bond was not a call on the budget or a tax incentive.

“That represents this Government listening and understanding the hurdles in the way of business, and taking steps to reduce or eliminate those hurdles,” she stated.