Unless high taxes and the four-year age limit on imported cars are changed, the foreign used car industry will die.That was the message being sent to Minister of Trade and Industry Stephen Cadiz yesterday by used car dealers who gathered in protest outside the ministry's offices, Nicholas Towers, Independence Square South, Port-of-Spain.
T&T Automotive Dealers Association president Vishan Babwah called on Prime Minister Kamla Persad-Bissessar and Cadiz to reduce taxes and increase the car age limit to six years.Babwah said: "If we don't get six years the industry will definitely collapse."He said in 2008 the age limit of used cars was reduced to four years and taxes on foreign used cars were raised.Babwah said the price of cars increased, resulting in reduced sales, forcing many dealers to close their doors.Regarding taxes placed on foreign-used cars, he said taxes were determined by the size of the car engine.
He said in some cases taxes placed on certain cars were just $2,000 less than taxes placed on new cars.Babwah said before 2008 there were approximately 300 dealers. However, he added, today there are just over 100 dealers still in business.He said: "Since 2008 the industry has been dying slowly."Babwah said the foreign-used industry employed just over 10,000 people and had provided for the creation of many "spin-off businesses."He said the industry opened the door for car customisation businesses, tint shops, parts dealers and created a demand for mechanics.Babwah said those industries were also being affected due to downsizing of the foreign-used industry.
He criticised the Government for travelling abroad looking for foreign investors, instead of focusing on locals who have built a viable industry that had created employment.Babwah added: "We are not asking for any special favours. All we are asking is for them (the Government) to undo some of the punitive measures so we can continue our business and serve the population of T&T."He said the association met with Cadiz on February 22 to air its concerns.Babwah said since then they had not heard from Cadiz, adding: "He is dragging his feet on the issue."Cadiz was unavailable for comment when called.Two messages were left for him but they were not replied to.
