The Inland Revenue Department (IRD) has updated the way the tax is applied for licencing new vehicles, persons now being charged the licensing fee per month, effective Nov. 4.
“Previously, the department was issuing the tax based on a quarterly basis for new registrations for licensing purposes. However, that was changed to monthly,” explained Senior Tax Inspector at the IRD, Oleah Prentice, on a recent edition of “Traffic Talk” where, as special guest, she joined Inspector Phillip Eddy and Officer Donaly Liburd-Chiverton, the hosts of the programme.
She noted the new tax structure will make the tax rate cheaper for new registrants and highlighted that the annual fee will remain the same. She also advised the public of the necessary documents needed when registering vehicles.
“When registering a vehicle, if you are just registering, all you need is the registration document and identification. If you are licensing, you require your inspection and your insurance. We have seen persons just come in with the registration and insurance without their inspection, so they have to go back and get the inspection,” she said.
She further explained that for transfers, proof of insurance is also needed except in the case where persons would have notified the Traffic Department that the car will not be on the road and granted a waiver.
“We are asking the motorist to be mindful of this when you are doing a transfer. We require your transfer document from traffic, your insurance and if you are a new taxpayer to the department, you will need identification,” she said.
Persons are also asked to note that a vehicle must be registered with the Traffic Department before it can be licensed with the Inland Revenue Department.