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Vehicular Tire Importation and Excise Taxes Related Thereto


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Proposal to Tax Tyre Imports

In Panama, a law initiative was presented that seeks to establish a tax on the import of new tires in the country, which would range, depending on the type, between $1.8 and $12.6.

Wednesday, November 28, 2018

The law presented to the Congress contemplates imposing a $1.8 tax for each motorcycle tire and small vehicle, $2.6 in light tourism vehicles and family economic vehicles, and $3.1 for luxury tourism vehicles.

You may be interested in "Tires: Market Figures in Central America"

The proposal details that the tires for high-end and 4x4 vehicles would be $3.3, the tires for public transportation and small cargo trucks would be $7.25, and the tires for heavy cargo and buses are proposed to be $12.6.

In this regard, Felipe Rodriguez, president of the Association of Distributors of Spare Parts and Tires of Panama, said to Panamaamerica.com.pa that "... the way in which the law project 705 is designed is worrisome, because no one knows where the figures emerged to calculate the collection of a tax that would tax each tire that enters the country to create a fund that would also serve to pay a concessionaire that would manage the waste tires."

Rodriguez added that "... We are concerned that there has not been a full consultation with those of us who are handling this type of business. The way in which it is presented is a matter of great doubt and that is why we have met and concluded that we are going to ask for the project to be reviewed in more detail."

According to reports from CentralAmericaData, in the first quarter of 2018 the main importer of new pneumatic tires in Central America was Guatemala, with $29 million, followed by Costa Rica, with $21 million, Panama, with $18 million, Honduras with $16 million, Nicaragua and El Salvador, with $11 million each.

See Law proposal.

 

https://www.centralamericadata.com/en/article/main/Proposal_to_Tax_Tyre_Imports

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I'm shocked that anyone would suggest that a politician or legislative body as a whole would do anything underhanded, such as passing tax laws for alternative purposes. Shame on you.

(Written tongue in check, for those who don't get sarcasm.)

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Tires in Central America: Market Figures

From January to September 2019, companies in the region bought new tires abroad for $340 million, 5% more than in the same period in 2018, with Nicaragua and Panama being the markets that increased imports the most.

Tuesday, March 10, 2020

Figures from the Trade Intelligence Unit at CentralAmericaData:

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Guatemalan Companies, Main Buyers
In the first nine months of last year, the main importer of new pneumatic tires in Central America was Guatemala with $99 million, followed by Panama with $68 million, Costa Rica with $60 million, Honduras with $44 million, El Salvador with $36 million and Nicaragua with $33 million.

Four of the six countries recorded year-on-year increases in purchases. In Nicaragua imports increased 17%, while in Panama, Guatemala and El Salvador the increases were 15%, 9% and 7%, in that order.

Costa Rica and Honduras were the markets that registered negative variations, with decreases of 5% and 9%, respectively.

Regional Business: Slight increase
Between January and September 2018 and the same period in 2019 the value imported into Central America had a positive variation, going from $323 million to $340 million.

For the periods in question, imports from China also increased, in this case by 9%, rising from $164 million to $178 million.

Main Suppliers
In the first nine months of 2019, 52% of the value imported into the region came from China, 6% from Japan, 5% from the USA, 5% from Thailand, 4% from Brazil, 4% from India and 3% from Mexico.

China is the fastest growing source market for imports for the months in question over the past eight years, accounting for 31% of the region's total imports in 2012 and rising to 52% in 2019.

Note: For this report, prepared by CentralAmericaData, data from SIECA were used.

 

https://www.centralamericadata.com/en/article/main/Tires_in_Central_America_Market_Figures

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  • Moderator_02 changed the title to Vehicular Tire Importation and Excise Taxes Related Thereto

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