BANDAR SERI BEGAWAN
Friday, March 18, 2011
HIS Majesty's Government has amended excise duties for vehicles to reduce the ownership of cars in the Sultanate and control the use and import of vehicles with high fuel consumption.
The tax changes, which will come into force on April 1 this year, are also aimed at raising awareness on the impact of automobiles to the environment, the Ministry of Finance said in a press statement issued last night. The government, moreover, sees these amendments to the Excise Order 2006 as a move to encourage growth in the public transport sector by providing incentives.
Under the new rates, the excise tax for cars with an engine capacity of 1700cc and lower will be reduced to 15 per cent from the current 20 per cent.
The tax reduction is seen to favour lower-income individuals in light of observations that owning a car in Brunei is a necessity and that public transport has yet to improve.
Vehicles with an engine capacity of from 1701cc to 2500 will be charged a duty of 20 per cent.
Automobiles with an engine capacity of 2501cc and up will be imposed an excise duty of 25 per cent to 35 per cent. (See table)
Apart from the new basic excise rates schedule, an additional five per cent duty will be imposed on vehicles that run on diesel.
"To encourange the use of energy-efficient cars which are more environmentally-friendly, excise duties for all hybrid cars will be reduced by five per cent after the basic rates have been calculated," the ministry said.
"To encourage the growth of the public transport sector in this country, excise duty for buses or vehicles (that can carry not more than nine passengers) will be reduced to 15 per cent compared to the current rate of 20 per cent," it added. "However, excise duty for heavy vehicles such as lorries, tankers and so on, remains at 20 per cent.
"For vehicles used as rental cars or taxis, or vans that carry not more than nine passengers, the excise duties are the same as private vehicles outlined."
For new vehicles subjected to the new rates and registered after the amendment comes into force, the car dealer can apply for a tax rebate or refund on payment of duties that have been made earlier to be aligned with the new rates.
"With the amendment, it is hoped that the citizens and residents of Brunei Darussalam will be more environmentally conscious and will work together to safeguard the environment," the ministry said. "Hopefully, with this awareness, it will help lead towards sustainable development for Brunei." The Brunei Times
source : BruneiTimes