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Nicaragua Limits Used Car Imports

Article Summary:

Nicaragua is set to pass new tax reforms and change laws in the automotive sector, as authorities plan to remove the selective consumption tax and customs duty on importation of hybrid vehicles, and limit imports of used cars to the nation.

Photo Credit: Prensa Nicaragua

Original Article Text From Prensa Nicaragua via Google Translate :

DAI ISC Removed and Hybrid Vehicles

The automotive sector is capitalizing on the reform coalition Tax Act because it eliminates the selective consumption tax (ISC) and the Right to Import Tariff (DAI) to hybrid vehicles entering the country.

Confirmed to reporters Aguerri Adam Joseph, president of the Superior Council of Private Enterprise (COSEP), the Government agreed to make this tax relief to these types of vehicles with dual purpose: to stimulate the supply in the local market and reduce level of gaseous pollutants in the environment.

Aguerri explains that the Nicaraguan Association of Motor Vehicle Dealers (Andiva) COSEP-member made the request to remove the ISC and the DAI to hybrid vehicles because they are those who are entering with force in the modern market, but the cost of imports is greater than that of vehicles using petroleum fuels.

“It is giving preferential treatment to hybrids that are efficient in their use of energy and as we are talking about in this country to reduce oil consumption, this is a good step,” he argued Cosep president.

Carlos Bendaña, Andiva executive secretary, explains that a hybrid vehicle is combining alternative propulsion engine driven by electricity from batteries and an internal combustion engine.

Aguerri Bendaña and argue that few such cars being imported, precisely because it is more expensive than gasoline or diesel.

Bendaña not say how much is the cost difference but argues that “very few” hybrid vehicles have been sold in the country, being the “Toyota Prius model that more is coming.”

Although they are more expensive Bendaña believes that by reducing the tax burden would improve the supply in the local market, where companies must promote people’s demand. But it also involves an investment in workshops and trained personnel for maintenance.

In the tax reform not touch the 35 percent rate of ISC for private vehicles with cylinder capacity greater than three thousand cubic centimeters reform passed in 2009.

The economist Rene Vallecillo, Cosep technical team, said the government also takes up the proposal to limit the import of used vehicles for private use to a maximum of five years and ten years for public transport vehicles and cargo.

Link to Original Article:

From Prensa Nicaragua

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