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Used Car Importers Want Dialogue
With the Government on Proposed
Import Restrictions
Come June 5, used car importers
will begin their countdown to
desperation if the government
moves forward to announce the
prohibition of vehicles more
than 7 years old, this according
to José Carballo, president of
the Cámara de Importadores de
Autos Usados.
The government announced last
month that it would use June 5 -
Environment Day - to make the
announcement on the changes in
importation and remove taxes
completely on "Hydrid" vehicles,
electrically powered vehicles
backed by gasoline power.
Carballo said that the
Ministerio de Hacienda - Revenue
Ministry - wants to give itself
the luxury of removing duties on
luxury cars, by removing the tax
on these types of (Hybrid)
vehicles, the cost would still
be over us$25.000 dollars, an
amount that is far from the
reach of the average car buyer.
For now, the only importer of
Hybrid vehicles is Purdy Motor
with the Toyota Prius.
The change, according to
Carballo, is a move against the
used cars sector. Consumers are
buying more used cars than new
ones. Carballo said that the
move will take them out of the
market as the tax on used cars
less than five years is higher
than that of new cars.
Critics say that prohibition is
favour the small group of
families that own the new car
dealerships.
Used car importers are calling
on the government for a dialogue
on the situation and to look for
a solution to the problem.
"The government is trying to
cover it's inefficiency in
finding alternatives to cleaner
air, like a better road network
and cleaner fuels. We have
offered options, but no one is
listening to us", said Carballo.
Carballo added that the
prohibition could mean a direct
loss of more than 30.000 jobs
that are employed in some 3.200
used car dealers in the country.
Direct jobs as auto mechanics,
body repair, bonded warehouses,
financial companies and
transport and duty agencies will
be affected.
The Cámara de Importadores de
Autos Usados estimates that is
brought in some ¢48 billion
colones (us$100 million) in tax
revenue each year.
In 2004, 40% of all imported
cars to Costa Rica were over 7
years old. The percentage equals
to 20.000 of the 50.000 cars
imported during that year.
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The Toyota Prius is one of the
Hybrid vehicles that would be tax exempt under the proposed
import rules to be announced on June 5.
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What Makes it a "Hybrid"?
Any vehicle is a hybrid
when it combines two or more sources of power. In fact, many
people have probably owned a hybrid vehicle at some point. For
example, a mo-ped (a motorized pedal bike) is a type of hybrid
because it combines the power of a gasoline engine with the
pedal power of its rider.
Any vehicle that combines two or more sources of power that can
directly or indirectly provide propulsion power is a hybrid.
The gasoline-electric hybrid car is just that -- a cross between
a gasoline-powered car and an electric car. |
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