Customs Comptroller Glenn Gomez has confirmed that Nassau Motor Company (NMC) has agreed to pay outstanding duty owed to the department pending a calculation of what is owed.

The agency is also seeking to resolve other pay issues involving those affected by the vehicle duty rate changes announced during the Budget Communication on May 26, the comptroller added.

Gomez told The Nassau Guardian yesterday that his agency met with NMC earlier in the day. The Department of Customs, however, is still working out the amount owed, Gomez added.

Documents obtained by The Guardian indicate that NMC cleared six SUVs (sport utility vehicles) through the Department of Customs at a rate of 60 percent, the day after Prime Minister and Minister of Finance Hubert Ingraham raised the duty rate on such vehicles to 85 percent.

In total, the car dealer would owe customs more than $28,000, according to the documents.

During the 2010/2011 Budget Communication in the House of Assembly, Ingraham announced that a rate of 65 percent will be taxed on passenger vehicles with an engine of 2,000 cubic centimeters or less, and a rate of 85 percent will be charged for all other passenger vehicles and trucks with engines larger than 2,000 cubic centimeters.

The changes took immediate effect.

However, a later rate restructuring by the prime minister including a 75 percent duty bracket will probably mean the dealer will only end up owing the government about $17,000.

There was some confusion and controversy regarding the rate changes. As a result some people/companies paid more than was owed, and others less than what was owed.

Gomez said customs is seeking to resolve these issues.

"I think most people have come up with the funds. There may have been one or two who had the duty but it was the difference they had the difficulty with," said Gomez. "Once they were able to come up with at least 50 percent of it we were reasonable with them understanding that it may have been sudden for a lot of people."

Gomez added that there are a number of people customs will be refunding money to. Customs is compiling a list of these individuals, Gomez confirmed. Some paid the higher 85 percent rate which was later amended to 75 percent.

"What we are doing is we want to get all of the individuals so that when we call we can get everybody," said Gomez.

Wednesday, June 23, 2010



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