Motorcar imports increased by US$28.5 Million in first half of 2025

Imports of motorcars increased by US$28.5 million in the first half of 2025, according to the Ministry of Finance’s Mid-Year Report 2025, which was laid in Parliament on Monday.

The report underscores the continued surge in vehicle importation and ownership as one of the clearest indicators of Guyana’s rapidly expanding economy.

“Customs and trade taxes totalled $22.3 billion, reflecting an increase of $3.9 billion over the corresponding period in 2024. Import duty collections accounted for 86 percent of revenues in this category, climbing by $3.7 billion, largely due to increased collections from motorcars and other motor vehicles, and to a lesser extent, cement,” the report noted.

The report also highlighted robust credit growth. Credit to households rose by 7.3 percent to $51.8 billion, driven by a 20.3 percent expansion in lending for motorcars, which reached $25.3 billion in the first six months of 2025.

These developments reflect a continuing upward trend seen in recent years. In the 2024 Mid-Year Report, excise-tax collections increased by 11.9 percent—to GYD 16.5 billion—owing to a rise in the number of imported motor vehicles. Import duty collections had also grown by $1.8 billion over 2023, a change linked to Budget 2023’s reduction in duty for new and used vehicles aimed at improving affordability and mobility.

Together, these patterns illustrate how vehicle imports have become both a driver of fiscal revenue and a symbol of rising prosperity in Guyana.

Earlier this year, more than 9,999 new vehicles were registered under the PAK licence plate series in just three months — a record turnover that prompted the introduction of the new PAL series.

“Within three months, we’ve had over 9,999 vehicles registered that would come onto our roadways. If this is not a sign of prosperity or progress, then nothing is,” Vice President Dr. Bharrat Jagdeo remarked during a June press conference.

Guyana’s economic transformation, fueled by major oil discoveries, has boosted disposable incomes and expanded access to financing, enabling more citizens to purchase vehicles. Some reports suggest that as many as 40,000 vehicles could be imported annually, underscoring the scale of the automotive boom.

However, this rapid growth has not been without challenges. The surge in vehicle imports has led to severe traffic congestion and heightened road safety concerns, as the number of vehicles on the nation’s roadways continues to climb.

In response, the government has embarked on massive infrastructure projects, including the construction of four-lane highways, new bridges, and bypass roads, to ease congestion and support growing commercial activity. These projects are part of a wider effort to modernize the country’s transport network and sustain economic expansion.

The Private Sector Commission (PSC) has welcomed the growth in vehicle registrations as a sign of economic vitality but has also called for a review of import taxes and duties to further encourage investment and stimulate the automotive market.

Meanwhile, the government continues to promote the adoption of electric vehicles (EVs) through incentives such as zero import duties, aligning with Guyana’s Low Carbon Development Strategy (LCDS) and broader environmental goals.

The combined effect of increased vehicle imports, rising household credit, and expanding infrastructure underscores the momentum of Guyana’s oil-driven growth.