Levy on the importation of motor vehicles for taxi operators |22 April 2013

However there are some exceptions clearly stated in the respective laws, which exempt or provide for a lower rate of tax and duties for certain class and category of persons such as recognised religious organisations, etc.

In line with the 2013 budget announcement made by the Minister for Finance, Trade and Investment, effective March 13, 2013 taxi operators are another category of persons also benefiting from a reduced rate of levy on the importation of a motor vehicle for the purpose of conducting their taxi business.

What is the new rate of levy on motor vehicles imported to be used as taxis?

As specified in the Customs Management Regulations 2013 (S.I 25 of 2013 which is available on the Seychelles Revenue Commission’s (SRC) website) effective March 13, 2013, taxi operators importing motor vehicles for their taxi business are liable to a levy of SR5,000/-. The fixed amount is payable to Customs at the point of entry in addition to the other applicable taxes and duties such as trade tax, excise tax and Vat as shown in the table below.

What are the procedures to be followed for taxi operators to benefit from this reduced rate of levy?
The taxi operator needs to make an application to the Ministry of Finance, Trade and Investment for the reduced rate of levy where their Bill of Entry will be endorsed by an authorised officer of the ministry. The endorsed Bill of Entry will then need to be attached with all the necessary applicable documents and be submitted to Customs for the release of the imported vehicle.

In order to avoid delays in clearing the vehicle at Customs it is very important that the operator gets their Bill of Entry well in advance.

What happens if the imported vehicle changes ownership?
In circumstances whereby the taxi operator decides to sell the vehicle on which the reduced rate applied to an individual not in the taxi business, then the taxi operator has to pay Customs back the balance of the levy that was not paid at the time of import before the vehicle can change ownership.
 
For more information
For more information please contact the Concession Unit, Inland Revenue, New Port on 4293758 or e-mail us on inlandrevenueoperations@src,gov,sc.
For a copy of the Customs Management Act and its regulations please visit the SRC’s website at www.src.gov.sc.