Hybrid Vehicles to Cost More: Customers to Pay Higher Prices

Consumers in Trinidad and Tobago could soon pay significantly more for certain hybrid vehicles after an overnight Customs & Excise classification change left importers facing unexpected taxes on vehicles already at the nation’s ports and in transit.
The controversy stems from Customs & Excise General Order No. 24 of 2026, dated July 22, which immediately reclassified several Smart Hybrid Vehicles (SHVS) for customs purposes. Importers say the ruling took effect without warning, giving businesses no opportunity to adjust pricing, shipping arrangements or financial commitments.
The vehicles affected include the Suzuki Fronx, Suzuki Grand Vitara, Suzuki Swift, Suzuki Ertiga, Suzuki XL7, Toyota Urban Cruiser and Toyota Taisor. According to the Customs ruling, these models are equipped with a Smart Hybrid Vehicle (SHVS) system in which the electric motor does not function as the vehicle’s primary source of propulsion.
The abrupt implementation has sparked concern throughout the automotive sector, with importers warning that the unexpected duties could have serious financial consequences.
Among those speaking out is RO-RO Importers, one of Trinidad and Tobago’s largest and most reputable vehicle importers. The company described the move as an overnight rule change that leaves businesses paying taxes they had never budgeted for on vehicles that had already been purchased, shipped and, in some cases, had already arrived in the country.
RO-RO said importers have been clearing these mild hybrid vehicles under the existing Customs interpretation for approximately two years and were never previously informed that the affected models would be treated differently.
The company is also questioning the legal basis for the decision, noting that the relevant legislation has not been amended by Parliament. It is calling on Customs & Excise to explain the basis for the new classification and to grant a grace period for vehicles already at the port or in transit before the ruling took effect.
Industry stakeholders warn that the consequences are likely to extend beyond dealerships. Any increase in import duties is expected to be passed on to consumers, meaning affected mild hybrid vehicles could become considerably more expensive.
The development has also sparked wider debate over regulatory certainty and fairness. Importers argue that while Customs has the authority to issue classification rulings, changes with immediate financial consequences should provide reasonable notice or transitional arrangements, particularly where businesses have already committed substantial sums to inventory under the previous interpretation.
At the time of publication, the Customs & Excise Division had not publicly responded to the concerns raised by importers or indicated whether a grace period would be considered for vehicles already shipped before the new ruling came into effect.
With hybrid vehicles becoming an increasingly popular option for motorists seeking improved fuel efficiency, the overnight implementation of the new classification could have significant implications for vehicle prices, dealership operations and consumer choice across Trinidad and Tobago.

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