Reduced fees in effect as of March 1
A duty reduction on imported electric-powered vehicles took effect Saturday as part of the new rate system set out in the Customs Tariff Law, 2012.
“Electric vehicles arriving in the Islands from March 1 onwards will attract [a] significantly lower duty rate when compared to the existing duty rates,” Cayman Islands Financial Secretary Ken Jefferson confirmed over the weekend.
The updated Customs Tariff Law allows a reduction in import duty from 22 percent to 10 percent on a fully electric-powered car. The duty for hybrid electric-gas vehicles has been cut from 22 percent to 15 percent.
The reduced tariff is on top of a 10 percent duty cut on electric vehicle imports approved by former premier McKeeva Bush’s government in 2012. Typically, vehicle imports are charged an average 32 percent duty rate, but the rate can go higher depending on the size of the vehicle.
Cayman Automotive owner John Felder has been waiting for the news.
“The 10 percent [overall] import duty is going to make a big, big difference,” he said. “That will drop the total price for some of these cars under $30,000.”
Mr. Felder also has been proceeding with implementing the island’s electric car charging system, the expansion of which partly depends on the duty rate reduction, he said.
So far, electric car charging stations are in operation at the Cayman Motor Museum in West Bay; the Crighton Properties building in George Town; Governor’s Square; Camana Bay; and at the Reef Resort in East End.
Two other charging stations are in the process of being developed at Kaibo Beach Bar and in Grand Harbour.
“Eight more [stations] are in the pipeline,” Mr. Felder said Monday.
Sales of electric cars in the Cayman Islands have been sluggish since last year. Mr. Felder joked in August that with six fully operational charging stations and 12 electric vehicles sold, “We’ll have 50 percent coverage for those vehicles.”
Mr. Felder’s ultimate goal is to expand the charging network to 14 stations around Grand Cayman. “We wanted to make sure every area of Grand Cayman has an electric car charging station.” he said.
However, such further investment will require more consumer interest, Mr. Felder said.
“These electric vehicles are more expensive [than the common gas-powered car],” he said. “But we’ve got to do something to get rid of our dependence on foreign oil and clean up the environment.”
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