Budget 2024: Licences and some fees to increase as wages improve

By Admin. Updated 10:40 p.m., Monday, January 8, 2024, Atlantic Standard Time (GMT-4).

While income taxes will be reduced, minimum wages will increase, and wages will slightly increase, Vincentians will pay more for licences and some fees, according to provisions outlined in budget 2024.

Minister of Finance, Economic Planning, and Information Technology – Camillo Gonsalves said driver’s licences, vehicle licences, the airport service charge, and the electrical inspection fee will be increased this year.

He made the announcement on Monday (January 8) during his address after the first reading of the 2024 Appropriations Bill in Parliament, often referred to as the Budget Speech.

He announced the increases under a number of fiscal measures aimed at enhancing revenue collection.

“These measures are designed to adjust user fees and licences to keep pace with the costs of providing the various associated services and to introduce new user fees where new services have emerged. The measures are expected to yield approximately $56,730,000 in additional revenue in 2024,” he said.

Drivers’ Licences

Minister Gonsalves said drivers’ Licence and related fees were last reviewed seven years ago, in 2016.

“The time has now come to increase these fees given the passage of time and the inevitable increases in costs incurred in the delivery of these services. This measure is expected to yield $2 million in additional revenue,” he told Parliament.

Motor Vehicle Licences

He said motor vehicle licenses were also last reviewed in 2016.

“In light of the condition of our road networks. the increased traffic on the road, and the continuous impact of weather events, Budget 2024 allocates in excess of seventy million dollars ($70 million) for road repair and rehabilitation, and the construction of new roads. While it is not expected that the revenue collected from motor vehicles licences will be sufficient to meet the full costs to upkeep the public roads across the country, it is expected to contribute to doing so,” he said.

“Accordingly, motor vehicle licences for all classes of motor vehicles will be increased in 2024. The new fees make provision for licence fees for new categories of Goods Vehicles to capture the heavier trucks and larger trailers that now traverse our roads daily,” he added.

He said: “These heavier motor vehicles adversely impact the road surfaces that were not originally engineered for trucks in excess of 12 and 15 tons. This measure will generate additional revenue of $4.5 million”.

Meanwhile, the duty on imported tyres will be reduced by 50 percent, the finance minister announced in his budget speech.

He said: “Between January 1, 2024 and June 30, 2024, all new tyres imported into Saint Vincent and the Grenadines will enjoy a duty reduction of 50 percent”.

“Before this measure, motorcycle and industrial vehicle tyres attracted a 5 percent duty, tyres for buses and lorries were charged 15 percent, and motor car tyres 25 percent. As indicated, these duties will all be halved for the first six months of 2024,” he added.

Electrical Inspection Fees

The finance minister also announced that electrical inspection fees will be increased.

He said: “Over the years, the Electrical Inspectorate Department has grown in importance as the built environment, both residential and commercial, has evolved and expanded. The Inspectorate is the principal regulatory body that ensures that all electrical installations in all buildings in the country are safe and compliant with the relevant national electrical standards before being connected to the national power grid. The Electrical Inspection Fees were last increased in 1995. In that year, the Inspectorate office had seven (7) staff members and an expenditure budget of $195,660. The Inspectorate collected $58,493 in revenue that year”.

“Since then, this Administration has invested in strengthening the institutional capacity of the Inspectorate. In 2020, the Electrical Inspectorate Department was restructured and provided with seven additional technical staff including a Chief Electrical Inspector and a Deputy Electrical Inspector, moving the staff complement to fifteen (15) up from eight (8) in 2019, In Budget 2024, there are eighteen (18) staff and it has a budget of $911,017 allocated, including $110,000 for staff training. The new fee structure will introduce a small fee for wiremen (Class 1,2 and 3), and increase the fees for electrical inspections (basic charge and charge per point) for residential and commercial installations. These new fees are anticipated to bring in an additional $250,000 in revenue,” he said.

Airport Service Charge

The Airport Service Charge will be increased.

The finance minister said: “In Budget 2024, the Airport Service Charge will be increased from US$40 to US$55. This change, which is payable on all airline tickets for travel in and out of the country, goes directly to fund the operations of Argyle International Airport”.

“Even with this increase, our Airport Service Charge is amongst the lowest in the region. In fact, our overall effective charges on international air travel remain low when compared to our regional peers,” he said.

“Given the forecasted numbers for passenger movements in 2024, this measure is expected to raise an additional 56.6 million in revenue and will be in effect from May Ist. 2024,” he added.