Government is tapping into the motor vehicle concession regime for public sector employees in a bid to raise revenues following the fallout caused by Hurricane Melissa.

It’s proposing to modify the 20 per cent Duty Concession on Motor Vehicles for Public Officials, a move that is estimated to yield $1.3 billion in revenue, effective May 1, 2026.

Finance Minister Fayval Williams made the announcement Tuesday in the House of Representatives where she outlined new revenue measures for the upcoming fiscal year.

She explained that the current 20 per cent duty concession on motor vehicles for public officials in certain positions reduces the duties payable when importing or purchasing vehicles.

“This concession was introduced to reduce the cost of vehicle ownership, support mobility, and assist certain public sector groups in an environment that no longer exists,” she said, adding that “it represents a significant reduction in Government revenue”.

Williams explained that under the current framework, public officials in eligible posts are afforded preferential tax treatment on the importation of motor vehicles. Within this framework, both the Special Consumption Tax (SCT) and General Consumption Tax (GCT) are fully waived, and the applicable customs duty is 20 per cent of the vehicle’s CIF value.

Consequently, beneficiaries of the concession are required to pay 20 per cent customs duty, with no liability for SCT or GCT.

Under the proposed amendments, the 20 per cent import duty remains payable, GCT becomes payable, and the SCT exemption remains.