New Duties for Cars in Brunei
Last night's news on the new excise duties for cars was good news for buyers of small or hybrid cars. But those who are hankering after the muscle type diesel hungry powerful engine SUV, you have to pay higher duties and more expensive cars. Diesel subsidies are just too high and many of us are using it for our fuel hungry SUVs.
His Majesty Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah Ibni Al-Marhum Sultan Haji Omar Ali Saifuddien Sa'adul Khairi Waddien, the Sultan and Yang Di-Pertuan of Brunei Darussalam has consented for the change to the rate of Vehicle Excise Duty through the Excise Order 2006 Amendment which will take effect from April 1st, 2011.
The Amendment aims to raise awareness among people and residents in the country on the effect of vehicle use towards protecting and conserving the environment in the country. It is also hoped that the change of Excise Duty rate, will also achieve the following objectives:
- To control the use and import of vehicles that consume high fuel and cause negative effects to the environment;
- To reduce cost of vehicle ownership to help control the increasing cost of living in the country, and
- To encourage the growth of the public transport sector in the country by giving specific incentives to public transport service operators.
The rate of Vehicle Excise Duty is therefore amended as follows:
~ The rate of Excise Duty for all types of vehicle is amended and imposed to the rates as shown on the screen.
~ Apart from this excise duty, for vehicles consuming diesel, an additional 5-percent excise duty will be imposed after counting excise duty for all types of vehicles.
~ In encouraging more use of hybrid type cars that can help increase the conservation of petrol efficiency, the rate of duty for all types of hybrid cars is reduced by 5 percent after counting is made on excise duties imposed on all types of vehicle and vehicles using diesel.
~ In boosting the growth of the public transport sector in the country, the Excise Duty for buses or vehicles that accommodate not less than nine passengers will be reduced to 15 percent compared to the current 20 percent. However, Excise Duty for other heavy vehicles such as lorries and tankers will be retained at the rate of 20 percent.
~ For vehicles used as rental cars, taxis or vans that accommodate not exceeding 9 passengers, the Excise Duty imposed is similar with individual vehicles like those imposed on all types of vehicle, those consuming diesel and hybrids.
~ While new vehicles affected in the reduction of Excise Duty and registered after the change of Excise Duty rate takes effect, car sale operators can apply for Excise Duty refund to coordinate with the new Excise Duty rate.
It is hoped that with the change of Excise Duty rate, people and residents in the country will be more aware of the need to cooperate and to raise awareness in protecting the environment. This awareness could assist towards a balanced and sustainable nation building.