Importation of motor vehicles |24 March 2021

Three weeks to claim extra 25% excise tax paid between November 17, 2020 and December 17, 2020

Those who bought a motor vehicle for the transportation of persons and certain vehicles used for the transportation of goods and made payment or part payment to get their vehicle between November 17, 2020 and December 17, 2020 stand to benefit from a grace period from payment of the extra 25% excise tax introduced by government in December last year.

This decision, approved by the cabinet of ministers, was announced by Cillia Mangroo, principal secretary for Trade at the Ministry of Finance, in a press meet yesterday at Liberty House.

To recall, in his address to the National Assembly on November 17, 2020, the President of the Republic, Wavel Ramkalawan, announced a flexibility to the previously introduced moratorium on importation of motor vehicles. This allowed for the exemption from the moratorium for motor vehicles paid for from a foreign currency account.

Ms Mangroo explained that “in December 2020, noting that the moratorium was only meant to be temporary given our international commitments, but that the country was still facing foreign exchange limitations, government took a further decision to terminate the measure and to instead introduce an additional 25% excise tax effective January 1, 2021 on the importation of motor vehicles for the transportation of persons and for certain vehicles used for the transportation of goods. In subsequent consultations, and in order to ensure fairness, government has found it necessary to introduce a grace period from payment of the extra 25% excise tax increase for motor vehicles affected by the increase, where partial or full payments were made between November 17, 2020 and December 17, 2020”.

As of today, all applications for the grace should be addressed to the principal secretary of Trade Department, 2nd Floor Maison Esplanade, or through email cillia@finance.gov.sc within three weeks of this publication, after which no more application would be entertained.

Additionally, the ministry wishes to advise that subject to the publication of the required legal amendments, the 25% additional excise tax will be removed on all vehicles for the transport of goods classified under subheading 8704 of the Customs Management (Tariff and Classification of Goods) Regulations, 2018.

Ms Mangroo specified that the payment should have been made only between the period specified or else the claim will not be entertained.

For more information, please contact the Trade Division of the Ministry of Finance, Economic Planning and Trade on 4382135.

Vidya Gappy

Encadre

Vehicles classified under subheading 8704

Dumpers designed for off-highway use; Refrigerated vehicles with compression-ignition internal combustion piston engine (diesel or semi-diesel) not exceeding 5 tonnes; Insulated Truck with compression-ignition internal combustion piston engine (diesel or semi-diesel) not exceeding 5 tonnes; Plug-in hybrid electric with compression-ignition internal combustion piston engine (diesel or semi-diesel) not exceeding 5 tonnes; Other hybrid motor vehicles with compression-ignition internal combustion piston engine (diesel or semi-diesel) not exceeding 5 tonnes; Other motor vehicles with compression-ignition internal combustion piston engine (diesel or semi-diesel) not exceeding 5 tonnes; Refrigerated vehicles with compression-ignition internal combustion piston engine (diesel or semi-diesel) g.v.w exceeding 5 tonnes but not exceeding 20 tonnes ; Insulated Truck with compression-ignition internal combustion piston engine (diesel or semi-diesel) g.v.w exceeding 5 tonnes but not exceeding 20 tonnes; Other motor vehicles with compression-ignition internal combustion piston engine (diesel or semi-diesel) g.w.v exceeding 5 tonnes but not exceeding 20 tonnes; Refrigerated vehicles with compression-ignition internal combustion piston engine (diesel or semi-diesel) g.v.w exceeding 20 tonnes; Insulated Truck with compression-ignition internal combustion piston engine (diesel or semi-diesel) g.v.w exceeding 20 tonnes; Other motor vehicles with compression-ignition internal combustion piston engine (diesel or semi-diesel) g.v.w exceeding 20 tonnes; Refrigerated vehicles with spark-ignition internal combustion piston engine g.v.w not exceeding 5 tonnes; Insulated Truck with spark-ignition internal combustion piston engine g.v.w not exceeding 5 tonnes; Plug-in hybrid electric with spark-ignition internal combustion piston engine not exceeding 5 tonnes; Other hybrid motor vehicles with spark-ignition internal combustion piston engine g.v.w not exceeding 5 tonnes; Other motor vehicles with spark-ignition internal combustion piston engine not exceeding 5 tonnes; Refrigerated vehicles with spark-ignition internal combustion piston engine g.v.w exceeding 5 tonnes; Insulated Truck with spark-ignition internal combustion piston engine g.v.w exceeding 5 tonnes ;Other motor vehicles with spark-ignition internal combustion piston engine g.v.w exceeding 5 tonnes; Other Refrigerated vehicle with spark-ignition internal combustion piston engine; Other Insulated Truck and Electrically operated vehicles.