The new regulations announced in the 2016-2017 Budget, which drive up prices between Rs 50,000 and Rs 100,000 for reconditioned cars, has been applied since November 1, 2016. The importers continue to pressurize the government for a u-turn.
If you are buying a second-hand car, you will definitely pay between Rs 50,000 and Rs 100,000 more. Since Tuesday, November 1, 2016, new regulations announced in the 2016-2017 Budget came into force. Remember, these budget measures aim to re-balance the Mauritian car market between the new vehicles and those reconditioned.
Thus, two main measures take effect.The first one is the suspension of the carbon tax applied on the most polluting vehicles. The aim was to encourage the purchase of cars that emit less carbon dioxide (CO2) including less fuel. To do this, these greener vehicles on the contrary enjoyed a bonus by lowering their rates.
The second factor that increases the price of reconditioned cars is the new assessment method. According to Zaid Ameer, president of Imported Vehicles Dealers in Association (DIVA), since 2003 25% was removed from the list prices of reconditioned vehicles to calculate their rates and therefore the amount of applicable taxes. These 25% corresponded to the different taxes applicable in the exporting country. Since November 1, 2016, the rate rose to 5%.
“Prenons l’exemple d’une voiture qui coûte l’équivalent de Rs 1 million dans son pays d’origine. Auparavant, son prix hors-taxe à Maurice était de Rs 750 000. Aujourd’hui, il sera de Rs 995 000,” said Zaid Ameer.
In a showroom of the capital, a clerk explains to Défi Quotidien that cars that have been released on 1 November 2016 typically cost Rs 50,000 more. For Suzuki Swift previously displayed at Rs 560,000, it will therefore now be sold at Rs 610 000. For his part, the President of the DIVA considers that the rates will increase to Rs 100 000. He gives the example of a Nissan Micra whose price was Rs 420,000, which will now cost Rs 520,000.
However, reconditioned vehicle importers do not intend to accept these new regulations. DIVA’s leaders met the Acting Minister of Trade, Industry and Consumer Protection, Prem Koonjoo on Tuesday November 1, 2016. According to Zaid Ameer, the association has informed him of his wish to see the moratorium, which ended November 1, extended by several months. The President of the DIVA stresses in conclusion that importers have lodged an action in court challenging the new regulations.