Value-added tax (VAT) will no longer be applied to electric vehicles coming through the ports to Dominica in order to promote environmental friendliness and climate-resilience. This declaration was made PM Roosevelt Skerrit during his 2019/2020 budget address, and re-echoed by the Minister of Governance, Public Service Reform, Citizen Empowerment, Social Justice and Ecclesiastical Affairs, Honourable Gretta Roberts.
“The 15% VAT is applied to these vehicles and with the approval of these vehicles, the rate of VAT which will be applied is zero percent,” Greta Roberts said. “This measure is aimed at encouraging the use of more environmentally-friendly vehicles.”
This VAT removal on electric vehicles takes retroactive effect from September 1, 2019.
In a related development, the government has revealed that import duties will be waived on vehicles meant for tourism purposes in Dominica. This was stated by the Minister for Tourism, Honourable Denise Charles, who introduced a bill at the House of Assembly to amend the Excise Tax Act for the purpose.
According to the minister, the government in their 2019 budget address had planned to waive taxes and duties on buses to be used for transportation in the tourism sub-sector. Roberts said the government continues to partner with tourism and cruise executives to improve the sector and make them the best in their service to visitors and tourists.
“The measure is to remove the excise tax at the point of importation on buses which seat 21 to 29 people,” Charles said. “The measure is aimed at improving the fleet of buses available for use in tourism tax operations and organized tours. It is also geared at making the visitor experience more enriching since the larger buses are more comfortable.” The waiver applies to vehicles imported for tours and taxis between October 1, 2019 and September 20, 2020.
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