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  • 4 weeks ago
A new Customs ruling reclassifying certain mild hybrid vehicles is drawing sharp criticism from vehicle dealers and importers, who say the decision will increase prices overnight and leave businesses facing unexpected costs on vehicles already in transit.

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00:00purchasing a new hybrid vehicle in trinidad and tobago has become significantly more expensive
00:07that's after the customs and excise division issued general order number 24 of 2026 reclassifying
00:15several so-called smart hybrid vehicles under a different tariff heading the ruling states that
00:21the affected vehicles are equipped with a smart mild hybrid vehicle system where the electric
00:28motor does not function as a motor for propulsion as a result those vehicles will no longer benefit
00:34from the tax concessions previously applied to qualifying hybrid vehicles among the vehicles
00:40specifically identified are the suzuki francs gran vitara swift urtiga and xl7 along with toyota
00:49urban cruiser taser the ruling took immediate effect on july 22nd dealers say the impact will be felt
00:56almost immediately by consumers njm enterprises says on facebook the additional taxes will increase
01:03retail prices across tnt making fuel efficient vehicles less affordable at a time when many
01:10families are already struggling with the rising cost of living the company says while the decision is
01:15beyond its control it remains committed to transparent pricing and helping customers find the best value
01:22however it cautioned that the listed vehicles may not be the only ones affected noting that other makes
01:29and models falling within the same customs classification could also face higher taxes importers are also
01:36expressing frustration row row importers say customs has effectively changed the rules overnight despite
01:44allowing the importation and clearance of mild hybrid vehicles under the previous interpretation for the past two
01:51years they argue that businesses have already invested millions of dollars in vehicles that are either
01:57sitting on the port or currently in transit importers are now calling for an immediate grace period saying
02:04they did not budget for the additional duties and they warn that the extra costs will ultimately be
02:10passed on to consumers roro also questions the legal authority for the move pointing out that parliament has not
02:17amended the legislation governing hybrid vehicle tax concessions the trinidad and tobago automotive dealers
02:24association shares those concerns vice president ron del field says the industry was never consulted before the
02:31ruling was issued we we are totally surprised that after all these years of having a cordial relationship with um
02:39customs and excise division that i mean we were surprised that the controller of customs didn't reach out to us
02:46to meet on this issue and
02:47have a conversation particularly knowing you know the the ramifications of uh of such a pronouncement as this
02:57field says the decision affects far more than dealerships he says personal importers who have already
03:03sourced financing and purchased vehicles overseas are now being told they must find thousands of additional
03:10dollars to clear those vehicles from the port the association also disputes customs's interpretation that
03:16mild hybrid systems do not propel the vehicle fields argues that under the current legislation the
03:23on-board rechargeable energy system only has to contribute to propulsion not serve as the primary
03:30source of power the association believes any change to which vehicles qualify for concession should come
03:36through amendments to the law not through an administrative interpretation letters he said have already been sent to
03:44both the finance minister and the controller of customs requesting urgent discussions the industry is now urging
03:50the government to suspend implementation of the ruling or introduce a transition period to protect businesses
03:56and consumers with vehicles already purchased or shipped before the change took effect until then dealers
04:04warn prospective buyers should expect higher prices on a growing number of hybrid vehicles entering the local market
04:10market when contacted for comment finance minister davindranath tanku under whose ministry the customs and excise division
04:17falls says he was awaiting a full informative report on the matter before he can comment further or vishy to
04:25worry rupon ryan tv6 news
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