DUTY-FREE VEHICLE IMPORTS EXPLAINED

Press, Volume CI, Issue 29866, 5 July 1962, Page 14

DUTY-FREE VEHICLE IMPORTS EXPLAINED

(Aew Zealand Press Association)

WELLINGTON. July 4. Cars bought overseas before November 10 last year could be brought back dutyfree after a year of ownership but cars bought after that date must be owned five years before they could enter duty-free, the Minister of Customs <Mr S.heltonr announced today Mr Shelton sard November 10. 1961 was the date when the legislation requiring the longer ownership period was passed That legislation said the change would come into operation on January I, 1963. giving more than a year’s grace to those who had already purchased vehicles overseas on the assumption that the existing conditions would remain tn force However, since then, there had been complaints from a number of organisations mainly representing officers of various Government departments serving in overseas poets They considered that the

five years ownership requirement for duty-free entry of cars affected them harshly and should be reduced ‘The orig nal intention behind this duty-free concession was to assist new settlers.” Mt Shelton said The five-yeai qualification was imposed to restrict it to •his class of person “There is little justification m a New Zealand resident's oemg able to import a vehicle free of tax merely because he is in a position to travel overseas while the majority of our citizens pay duty and sales tax when they buy a motor-vehicle." he said With a one-year concession theie was considerable loss pf revenue. The amount lost was estimated at £270 000 for 1960 and £5OO 000 for 1961 The Customs Deoartment estimated that a substantial percentage of this amount was for cars imported by New Zealand residents, many of whom had financed the purchase out of travel al'owances provided from New Zealand's overseas funds.