Disappointing response to car stimulus plan

The commerce minister Karl Samuda is reporting that the public response to the recent stimulus package for the used car industry is disappointing.



According to Mr Samuda, the stimulus initiative has only generated a 5 per cent increase in duties collected.



In September, in announcing a cut in the Special Consumption Tax on imported motor vehicles, the Government had said it would boost car sales.



But the Opposition had rejected the Government’s pronouncements.



At the time, the Opposition spokesman on finance Dr Omar Davies said the policy would only promote a rush in the purchase and importation of cars.



But would use up scare foreign exchange.



The tax cut on imported motor vehicles will remain in place until March 31, 2010 when it will be reviewed.