To support stakeholders reliant on vehicles in sectors such as construction, agriculture, and mining, Minister of Finance, Dr Ashni Singh, announced that Budget 2026 provides reduced taxes on a range of vehicles, all to accelerate growth in key industries.
In his 2026 Budget presentation to the National Assembly on Monday, Dr Singh announced the removal of value‑added tax on new vehicles below 1,500cc (defined as less than four years old) to reduce import costs and make small, fuel‑efficient cars more affordable for families and small enterprises. He noted that budget 2023 had previously set a flat tax of $800,000 for used vehicles under 1,500cc.
Building on incentives for low‑emission transport introduced in 2023, the minister said Value Added Tax (VAT) will also be removed on hybrid motor vehicles below 2,000cc to support the country’s low‑carbon transition and encourage uptake of cleaner technologies.
Recognising the importance of double‑cab pick‑ups for businesses and households, Dr Singh said Budget 2026 provides a simplified flat tax regime: $2 million for double‑cab pick‑ups under 2,000cc and $3 million for those between 2,000cc and 2,500cc, irrespective of age. He said this is aimed at reducing import costs and streamlining taxation for this widely used vehicle type.
To bolster operations in remote and productive areas, the official said budget 2026 removes all import duties and taxes on all‑terrain vehicles across all categories, expanding earlier exemptions that targeted specific uses such as mining, agriculture, forestry and manufacturing. Dr Singh also said taxes and duties on outboard engines up to 150 horsepower will be eliminated to cut transport costs for hinterland and riverine communities and improve access to services and markets.
He said the measures form part of a broader effort to lower living and business costs, support economic activity, and strengthen connectivity between urban and remote communities.