The Senate on Friday approved the Road Traffic (Licence Duties), Order, 2024, Resolution, reducing the import duty on electric bikes (e-bikes) to 10 per cent.

Minister of Industry, Investment and Commerce, Senator Aubyn Hill, said the move was in keeping with a commitment made in the 2023/24 Budget Debate by Prime Minister, Dr Andrew Holness to provide similar incentives for electric bikes as were previously accorded for electric cars.

In 2022, the electric vehicle strategic framework as well as the governing fiscal policy was approved by Cabinet, and the order governing the importation of electric vehicles was issued. However, it restricted the importation to cars and sport utility vehicles (SUV).

“The Government will be removing that restriction to include a wider range, including electric motorbikes. Cabinet, therefore, gave approval by way of Cabinet decision No. 824, dated March 18, 2024,” Senator Hill said.

He explained that the Customs Tariff (Revision) (Amendment) Resolution, 2018 Customs Regulations, has been amended to reduce the import duty on electric bikes from 20 per cent to 10 per cent.

The third schedule of the Road Traffic Act has also been amended to provide an exemption from the payment of annual licence fees for electric bikes.

“The amendments mentioned would only be for electric bikes that are three years old or less since the date of manufacture. It was also approved for the regime to be in place from April 1, 2024 to March 31, 2029,” Senator Hill advised. 

He noted that the incentive being provided is in keeping with Jamaica’s goal of encouraging consumers to switch from internal combustion engine vehicles to those powered by electric motors.

“One important benefit of switching from internal combustion engine vehicles generally, is the elimination of the current noise nuisance which exists on our roads. This is so because the electric motor which powers an electric vehicle does not engage in the activity of the burning of fuel which produces a lot of noise.

“It is our further understanding that the exhaust system of electric bikes cannot be altered to produce the gunshot like sounds which have become frightening for the citizens of this country,” Senator Hill said.