First registration duty charges to rise for imported vehicles
FIRST registration duty charges for vehicles will increase in line with inflation on 1 January.
The duty, which ranges from £25 to £2,500, applies to all new and second-hand vehicles being imported into and registered in the island for the first time and increases in accordance with the vehicle’s carbon dioxide emissions, or engine size if emission figures are not available.
Two new bandings will also be introduced for the most-polluting vehicles with the highest emissions, which will bring Guernsey more in line with the UK and Jersey.
The increases aim to ensure that there is no real-terms reduction in revenue, with the States having agreed as part of the 2024 budget to use £250,000 of the additional revenue raised to mitigate the need to increase the standard bus fares in real terms next year.
Environment & Infrastructure Committee president Lindsay de Sausmarez said that Guernsey had set the target through its climate change policy to reduce emissions by 2030, and that transport still remained the island’s biggest contributor of greenhouse gas emissions.
‘Currently those who choose to import higher carbon dioxide-emitting vehicles pay much less in Guernsey than they would do in Jersey and the UK.’
‘These two new bandings bring us more in line with these jurisdictions, continuing the principle of “polluter pays” so that those who are making efforts to reduce their emissions don’t have to pay for other people’s lifestyle choices.’
She was pleased that the States had agreed to put the majority of the expected increase in revenue towards keeping bus travel affordable.
‘Buses are a vital public service and there are many people who depend on them, especially given the current cost-of-living pressures.’