Wehby

In aN effort to jump-start their sagging balance sheets, both the new- and used-car dealer groups are planning to meet with minister without portfolio in the Ministry of Finance and the Public Service, Don Wehby, to outline the challenges that the industry is now facing.

The Automobile Dealers Association (ADA) and Jamaica Used Car Dealers Association (JUCDA) said that the main items on the agenda are the rollback of the special consumption tax (SCT) and the general consumption tax on cars.

sct charges

The SCT is levied on prescribed goods including petroleum products, tobacco products and alcoholic beverages with the tax rates varying according to whether the item is manufactured in Jamaica or imported, and was implemented in May of last year.

Minister Don Wehby confirmed this week's meeting but was unable to speak on the issues to be discussed.

"I'm meeting with Automobile Dealers Association ... Wednesday, the 18th," the finance minister said. He said that he did not receive a proposal from any of the groups, so he could not offer any comment.

Used-car market imports have fallen by 91 per cent for January when compared with last year's figures while the sales dipped 50 per cent over the same period.

Owner of Auto Impressions, Gregory Robinson, lamented about hefty costs incurred for storage on the wharves.

losing money

President of the JUCDA, Ken Shaw, also highlighted the fact the industry players were losing money.

"As it is now, when a dealer invests US$10,000 to buy a motor vehicle ... and that vehicle is in a category that attracts 134 per cent (aggregate) duty ... ," he said.

However, ADA board member Nigel Pagon is upbeat and keeping his fingers crossed. He said that if Wednesday's meeting was successful, the public would also gain from this rollback.

"Successful talks would mean a decrease in car prices," he said. "Everyone would benefit."

mario.james@gleanerjm.com