Dominica to exempt import duties, excise tax on vehicles and more

Dominica: Making the amendments to the VAT Act and Excise Act the government of Dominica would exempt the import duties and excise tax on motor vehicles imported by individuals or businesses, whose primary activity is the transportation of visitors. Dominica Cabinet meeting approved on Tuesday, December 8, 2020.

In a statement after Cabinet Meeting, Minister of Environment, Rural Modernisation and Kalinago Upliftment, Cozier Frederick said that in upcoming Parliament session on December 16, 2020, the government would give a green flag to exemption on import duties and excise tax on vehicles.

Making another announcement related to the packaging and labelling materials, Minister said that Cabinet has agreed to remove VAT and import duty on it. The above exemptions will also be applicable on “the equipment and machinery used in the production of goods, to improve the competitiveness of locally produced goods.”

He further added, “Parliament meets on December 16, 2020, and Government will seek Parliament’s approval of the amendments to the Excise Tax Act and the Value Added Tax Act to facilitate the permanent implementation of these measures.”

“Also included in the VAT amendment is the exemption of VAT on the import of pleasure crafts and excursion boats, measuring at least 45 cubic metres, along with their engines,” he added.

Minister said that all these measures are expected to directly benefit two productive sectors of Dominica, including Tourism and Manufacturing.

Frederick noted that these measures were decided following consultations with the stakeholders of respective sectors. “As a Government, we are happy that we are able to bring some relief to support particularly the micro and small businesses.”

People of Dominica have been waiting for tax exclusions and the measures introduced by the government will undoubtedly put into fair use and it is expected that many people will take the opportunity to expand their businesses and create new ones.

Minister also made a reference to the commitment of Prime Minister Roosevelt Skerrit towards the path of Dynamic Dominica and recalled the announcement during PM’s budget address for the year 2020/2021.