‘Mild’ hybrids hit with 20% duty

IMPORTERS of vehicles equipped with Smart “mild” Hybrid Vehicle (SHVS) Systems will now face a 20% customs duty in addition to the 12.5% value-added tax (VAT), following a new classification ruling by the Customs and Excise Division.

Customs and Excise General Order No 24 of 2026, issued on July 22, stated that vehicles fitted with SHVS technology do not qualify for hybrid vehicle concessions because “the electric motor does not function as a motor for propulsion”.

‘Mild hybrid does propel car’: Millennium Auto Dealership owner and Cunupia Business Chamber VP Rhondall Feeles.