Following a review of customs and excise duty tariffs for the 2024/25 Budget, new regulations have been approved by the Executive Council. These amendments took effect on April 1, 2024, as part of the Customs and Excise (Tariffs and Exemptions) (Amendment) Regulations 2024.
The government has increased import duties on alcohol and tobacco, with tobacco taxes rising by 2.1% and alcohol taxes by 1.1%. The intention behind these increases is to discourage smoking and drinking in alignment with public health objectives.
Additionally, a specific import duty has been introduced for beers and ciders containing up to 0.5% alcohol. This measure ensures that drinks branded as "alcohol-free" are not taxed at the same rate as regular alcoholic beverages but will still incur a duty at 20% of their value.
In September 2023, the Executive Council decided to increase duties on locally produced alcohol to promote tax neutrality. Taxes on local spirits with more than 22% alcohol content were raised up to £10.30 per litre, while other locally manufactured alcoholic beverages faced a new duty rate of £3.66 per litre.
However, due to feedback from local businesses, these increases will be implemented gradually. From April 1, 2024, previous duty rates for high-alcohol content spirits were reinstated, and duties on all locally produced alcohol were removed temporarily. Duties will be progressively applied starting October 1, 2024.
Import duties on buses with ten or more seats and certain heavy vehicles have been reduced to encourage economic development. Previously subject to rates between 35% and 45%, these vehicles now face a reduced rate of just 5%. This change aims to ease access for businesses needing capital equipment.
The complete regulations can be accessed online through the Saint Helena Government website.
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