The Energy Division of Saint Lucia’s Ministry of Infrastructure, Ports, and Energy has issued definitive clarifications regarding its concessionary tax policy for low-emission vehicles, establishing clear technical distinctions between qualifying and non-qualifying hybrid technologies.
According to an official statement disseminated through the National Competitiveness and Productivity Council, the policy framework specifically defines eligible hybrid vehicles as those employing “two or more distinct forms of onboard energy, each of which can propel the vehicle.” This technical specification effectively excludes so-called ‘mild hybrid’ vehicles that lack full electric propulsion capability, regardless of their marketing descriptions.
The regulatory basis for these concessions is formally outlined in Statutory Instrument Number 222 of 2025, which references the Customs Duties (Amendment of Schedule 4) (No. 4) Order, 2025. This legislative instrument specifies that the reduced customs duty rates will take effect on December 1, 2025, and remain valid through November 30, 2026.
Government authorities emphasized the critical technological differentiation between true hybrid vehicles and mild hybrid systems. The latter incorporate limited electrical components that support fuel efficiency functions such as engine assistance or start-stop mechanisms but cannot achieve propulsion exclusively through electric power. Since propulsion remains dependent entirely on internal combustion engines (whether gasoline or diesel), these systems produce “no meaningful reduction in tailpipe emissions” and consequently fail to meet the legal requirements for tax concessions.
The current policy initiative builds upon previous import duty waivers and tax concessions for low-emission vehicles that were implemented during the government’s first term. These earlier concessions, subsequently extended from December 1, 2023, to August 30, 2024, established the foundation for the current regulatory framework.
Acknowledging previous administrative practices where mild hybrid vehicles inadvertently received fee waivers, the government has instituted a transitional adjustment period. All such vehicles ordered before January 1, 2026, will still receive tax concessions to accommodate this regulatory transition.
The ministry articulated that the policy’s fundamental objective is to enhance affordability for consumers transitioning to electric vehicles while encouraging movement away from traditional internal combustion engine vehicles reliant exclusively on fossil fuels. This hybrid vehicle tax concession strategy serves as an interim measure bridging conventional and fully electric transportation, with the ultimate goal of achieving complete sector electrification.
Stakeholders seeking additional information are directed to review Statutory Instrument Number 222 of 2025, or contact the Energy Division directly at telephone number 1(758)468-6363 or via email at cepuo@govt.lc.