A new formula for calculating customs duty on imported vehicles, based on the size of the engine and not on the value of the vehicle has been firmly enforced since May 1, said Peter Nash, the Operations Manager for the Tonga Customs Department, confirming that there was no extension to the three months transitional period, which ended on April 30.

From May 1, the calculation of the customs duty on vehicles was based on the cubic centimetre or cc capacity of the engine of a vehicle and not on the cost, insurance and freight (CIF) value of a vehicle when it lands in Tonga.

The new formula was unpopular with some people who complained to their People's Representatives in parliament, asking for the transitional period to be extended.

But the House was pressed for time before it closed for the coronation celebrations and deferred making a decision on the appeal for the extension of the transitional period before the introduction of the cc formula.

The old rate of Customs Duty on all imported vehicles, old and new was 45%.

The new rate is calculated based on the cc capacity of the engine of a vehicle: $1.50 per cc for vehicles 1500cc and under, and $2 per cc for vehicles from 1500 to 30000cc, then from $30,000 upward will be $2.50 per cc.