Media Release: Applicable Taxes on Hybrid and Mild Hybrid Vehicles

The Ministry of Finance of Trinidad and Tobago issued a media release on 30 July 2026 outlining the tax obligations that will apply to hybrid and mild‑hybrid vehicles from 1 August 2026. The release specifies that hybrid vehicles will now be subject to Vehicle License Tax (VLT) calculated on a sliding scale based on engine capacity and electric motor output, with rates ranging from 3 % to 5 % of the standard VLT assessment. Mild‑hybrid vehicles will continue to be taxed under the regular VLT schedule but will incur an additional environmental levy of TT$150 per year. The document cites the Income Tax Act, the Customs and Excise Act, and the Vehicle Licensing Act as the legal foundations for these assessments and reproduces the tax‑rate tables published in the 2026 budget statement. The Ministry emphasizes that previously granted incentives for fully electric vehicles remain unchanged, while hybrid vehicles will no longer qualify for the zero‑rate exemption. Enforcement mechanisms include penalties for non‑compliance and a requirement for dealers to disclose the applicable tax liability at the point of sale. Stakeholders are invited to submit comments within 14 days of publication. This initiative forms part of the government’s broader strategy to promote greener transportation while securing revenue for infrastructure development.

https://www.finance.gov.tt/wp-content/uploads/2026/07/Media-Release-Applicable-Taxes-on-Hybrid-and-Mild-Hybrid-Vehicles.pdf