by Linda Straker
- Government projecting to raise approximately EC$2.6 million from increase
- Opposition Leader Dr Keith Mitchell raised illegality of payment
- Cornwall told Lower House a credit will be given to those who have already paid increase
Finance Minister Dennis Cornwall has admitted that Government has been collecting an increase in vehicle licencing fees without Members in both the Lower and Upper Houses of Parliament giving the necessary approval.
Opposition Leader Dr Keith Mitchell raised the illegality of the payment while speaking on the resolution to approve the vehicle licencing fee by EC$50. The increase was originally announced when Cornwall presented the 2024 budget statement in December 2023.
Vehicle licences are charged based on the type and size, ranging from EC$25 for bicycles to EC$3,500 for special heavy-duty vehicles.
“The fact is drivers have been paying this EC$50 for some time without the resolution getting the approval of Parliament, so you may have to do this retroactively, otherwise if this is given assent with today’s date and it is implemented as per the date then you may have to return the EC$50 to everybody who already paid,” Dr Mitchell said, pointing out the legal flaw.
Cornwall then told Members in the Lower House of Parliament that a credit will be given to those who have already paid the increase. “While some of the taxpayers would have already paid that EC$50 and we did not have in place the resolution, we have agreed that we will give a credit to the taxpayers who have already paid so that nobody will actually be affected unduly,” he said.
“We are making sure that going forward in the next cycle [for] motor vehicle payment that the credit is given to the taxpayer,” said Cornwall who reminded the House that motor vehicle licencing fees are collected during the first quarter of the year.
Cornwall said that Government is projecting to raise approximately EC$2.6 million from the increase and this revenue will be used to assist with road maintenance throughout the country.
Prime Minister Dickon Mitchell who presented the resolution for debate and approval said that the increase has become necessary to ensure that the Ministry of Infrastructure for which he is responsible, takes prudent measures to ensure that Government have everything necessary to treat with the road infrastructure.
“This is a modest request for road users… they money will be well accounted for, will be well spent, could be accountable and that all of the citizens of Grenada will benefit from improved road infrastructure in the coming months and years,” he told the House, pointing out that there are continuous demands on Government when it comes to road maintenance.
“There is a dramatic increase in vehicles on roads; many roadways when originally constructed were not meant for the volume, size and capacity that are currently on the roads. It’s a demand for the state to address those issues,” he said.
