• Martin Mathew

Dominica Exempts Excise Tax on Motor Vehicles in Efforts to Improve Tourism on Island

In an assembly meeting on Wednesday, the Commonwealth of Dominica's Prime Minister, Roosevelt Skerrit, announced that the government would free import duties and excise tax on motor vehicles. Under this new policy, taxi operators, who could only purchase old vehicles due to high import taxes, will now be able to buy new vehicles.


Dominica Exempts Excise Tax on Motor Vehicles in Efforts to Improve Tourism on Island

According to Minister of Tourism, International Transport and Maritime Initiatives, Janet Charles, this move will also contribute to making Dominica the top tourism destination in the region by providing resorts with the means to invest in luxury vehicles.


"It is important to improve our motor vehicle fleet, people must be transported in comfort while they experience the ride from the airport to the hotel or everywhere else in the country," Charles noted.

"From now, they are allowed to get these benefits on two vehicles in five years, and they will be released from an excise tax of 28% per cent and import duty on the luxury vehicle which is approximately 40%," Prime Minister Roosevelt Skerrit said during the assembly.

In recent years, Dominica has been internationally heralded for its efforts in promoting eco-tourism. The island is home to several sustainable resorts from the likes of renowned hoteliers like Kempinski, Hilton and the Marriott while also bolstering unique boutique properties like Secret Bay and Jungle Bay that prioritise the natural environment. The island is also hoping to become the world's first climate-resilient nation, as pledged by Prime Minister Skerrit following 2017's Hurricane Maria and supported by Dominica's Citizenship by Investment Programme. The Programme enables foreign investors and their families to make an economic contribution to the country through either a government fund or investing in real estate property in exchange for citizenship.


Introduced in 1993, Dominica's CBI Programme is considered the world's best by the annual CBI Index report. The study provides a comprehensive ranking of all government-legislated CBI Programmes and has ranked Dominica as the best destination for the last four consecutive years. The report, conducted by experts at the Financial Times' PWM magazine, cites the Programme's efficiency, affordability and attention to due diligence as some of the reasons for its ranking.