Mauritius Cuts Green Car Incentives, Raises Vehicle Taxes from June 2025

The Mauritian government is taking significant steps to curb vehicle sales. Starting June 6, 2025, it will increase excise duties on traditional fuel vehicles and reintroduce taxes on hybrid and electric models. Additionally, registration fees for first-time vehicle registration will rise by 30%.

The Negative Excise Duty scheme, which provided a Rs 200,000 rebate for electric car buyers, has been abolished.

One positive change is that registration fees will now be paid only once over a vehicle’s lifetime.

Prime Minister Navin Ramgoolam explained that these measures are aimed at reducing road congestion and addressing the country’s trade deficit.

Key measures include:

• Reintroduction of excise duties on hybrid and electric vehicles from June 6, 2025.
• Increase of excise and customs duties on fuel vehicles to between 45% and 100%, depending on the vehicle type.
• A 30% hike in registration fees during the initial registration.
• Removal of registration fees on the sale or transfer of second-hand domestic vehicles.
• Increase in the Road Motor Vehicle Licence (RMVL) fees, ranging from Rs 200 to Rs 4,000 based on vehicle type.

The Rs 200,000 rebate under the Negative Excise Duty scheme for electric vehicle buyers will be discontinued.

Mrinal Teeluck, Secretary-General of the Motor Vehicle Dealers Association (MVDA), said these changes are a heavy blow for vehicle importers.

He explained that the increased duties and reintroduction of taxes on electric and hybrid cars will slow down the shift toward greener vehicles.

He also expressed concern over investments made by importers in infrastructure, staff, and equipment in recent years, which now face uncertain prospects due to these new measures.

The industry had already communicated its concerns to the government during pre-budget discussions.

Source: Defi Media