2019/20 Budget Communication Final Budget Communication | Page 36

Reducing the duty on new vehicles between 1.5 liters (1500cc) and 2.0 liters (2000cc)
valued at $50,000 or less from 65 percent to 45 percent. In this context, only cars with
less than 200 miles on the odometer will be considered ‘new’. This makes smaller,
more fuel efficient vehicles more affordable.
Harmonizing the rates on all new electric and hybrid vehicles valued up to $50,000 to
10 percent. It should be noted here that this measure will have a sunset clause of 5
years, after which this special revision will revert closer to the rates for other small size
vehicles.
Increasing the duty on biodegradable and compostable plastic shopping bags, from 5
percent to 45 percent; but at the same time, reducing the duty on reusable cloth
shopping bags from 30 percent to 5 percent.
Banning the use of selected single-use plastic bags, plastic food utensils, and
Styrofoam food containers by January 1, 2020.
iii.
Strengthening Tax Compliance and Administration
Mr. Speaker,
A large part of ensuring tax compliance is making certain that tax-related legislation is
sound, clear, and comprehensive as a framework for tax administration.
In the Real Property Tax Act, we have increased the current cap on Real Property Tax
payments of those classified under “owner occupied” residences from $50,000 to $60,000 per
annum so as to augment revenue capture for higher end properties.
In addition, we will amend the Stamp Tax Act, and VAT Act accordingly, to reflect
that realty transactions will now attract VAT as opposed to Stamp Tax, albeit at the same 2.5
percent and 10 percent rates currently attracted for real estate transactions. Further, to facilitate
appropriate estate planning, gifts of real property to immediate family for purposes of legitimate
estate planning will not attract the realty VAT tax, with the proviso that the tax will become payable
if the recipient seeks to sell the property within seven years of receipt.
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