Regulation & Policy Sep 13, 2021 5:40 PM
The Minister of Commerce (MinComercio), María Ximena Lombana Villalba, spoke about the duties that hybrid vehicles will pay this year.
Lombana said that all hybrid vehicles imported until December 31st of this year in Colombia will pay a 5% tariff, El Heraldo reported.
The quota that had been defined for this year, which was 2,300 units, will not be taken into account to pay a lower tariff.
This is due to the recommendation of the Customs, Tariff and Foreign Trade Affairs Committee (Triple A), and Mincomercio decided to suspend the import quota through Decree 1078.
The tariff for this class of vehicles is 35%, but with Decree 1116 of 2017, import quotas were established for which a 5% tariff applied.
“Fulfilled that quota, any hybrid vehicle that entered additionally would pay the 35% tariff. For this year, the quota was 2,300 vehicles, but on the recommendation of the Triple A Committee the quota is suspended,” Lombana highlighted.
The five cities and their metropolitan areas with the highest number of electric and hybrid vehicles registered were Bogotá, Medellín, Cali, Cúcuta and Funza with market shares of 59.2%, 16.6%, 4.3%, 3.9% and 2.9% respectively, which together represented 86.9% of the national market.
For next year the import quota is 2,300 hybrid vehicles and the quota will be 3,000 vehicles for 2023, 2024, 2025, 2026 and 2027 each year.
Bottom-Line: The hybrid vehicle market continues to grow at a significant rate, and this measure will be fundamental to boost sales this year.
The government should consider rethinking the quota to further incentivize the growth of the sector in the coming years.