Budget 2018: Drivers to pay more at the pump for Super and Diesel
With immediate effect, drivers will pay more for super and diesel gas at the pump.
In his 2018 budget presentation, Finance Minister Colm Imbert announced that the price of super fuel will go from $3.58 to $3.97 per litre while the cost of diesel fuel will go from $2.30 to $3.41 per litre.
In what would surely be good news for gas station owners who have been clamouring for higher margins, the Minister said the margins would be increased on premium, super and regular gas to 19.5 cents and to 14.5 cents for diesel and kerosene.
Stating that 35,000 cars were imported in 2017, Imbert said the importations have cost the country $500 million in foreign exchange.
He said the Government was maintaining the removal of all taxes on hybrid passenger vehicles and extended that to CNG vehicles.
However, to stop the importation of luxury vehicles, the waiver will only apply to cars with engines under 1599 cc.
"To encourage the use of smaller, more fuel-efficient vehicles, and to reduce the loss of foreign exchange from motor vehicle imports, I propose to increase by 25 percent the motor vehicle tax and customs duty on private passenger vehicles with engine sizes exceeding 1599cc and not exceeding 1999cc. The increase in taxes imposed last year on vehicles with engine sizes exceeding 1999cc will remain. These measures will take effect on October 20, 2017,” he said.
There will be a moratorium until December on those vehicles that have already been purchased and en route to the country
Motorcyclists will also benefit from tax exemptions.
“Motorcycles are a popular mode of transport internationally and in many cities, they are a preferred option. They are fuel efficient and do not create traffic congestion. Accordingly, in order to encourage greater use of this type of transport, I propose to exempt all motorcycles with engine sizes under 300cc from all duties and taxes. This measure will take effect on October 20, 2017."
The Minister said he proposes to harmonise the customs duty on all tyres at 30 percent, whether new or used.
However, the customs duty on the importation of new tyres utilized on buses and lorries will remain at 15 percent. This measure will also be implemented on October 20.
There will also be an increase the inspection fee from $165 to $300.00.This measure will take effect on December 1.