Motor Vehicles


  1. Rate of excise duty and taxes on motor vehicles

  2. Assessment of value for second hand motor vehicles

  3. Calculation of excise duty exempted and payable by beneficiaries of 100% excise duty exemption on a motor car of higher engine capacity

  4. Guidelines for beneficiaries of 70% excise duty concession

  5. Guidelines for claim for negative excise duty on electric motor cars and electric goods vehicles


  1. Rate of excise duty and taxes on motor vehicles

    1. Motor Cars

      The rate of Excise duty and taxes on motor vehicles (motor cars including motor vehicles equipped with up to 10 seats including the driver) is as follows:

      Type of motor car and cylinder capacity (c.c.) Rate of Excise Duty VAT
      Internal Combustion Engine (Petrol or Diesel)
      Up to 550 c.c. 0% 15%
      551 - 1,000 c.c. 45% 15%
      1,001 - 1,600 c.c. 50% 15%
      1,601 - 2,000 c.c. 75% 15%
      Above 2,000 c.c. 100% 15%
       
      Motor cars equipped with electric boost system 0% 15%
       
      Hybrid motor cars 0% 15%
       
       
      Hybrid Motor Cars capable of being charged by plugging to external source of electric power 0% 15%
       
      Electric cars 0% 15%

       

      Note for motor cars with an Internal Combustion Engine (Petrol or Diesel)

      1. An excise duty concession of 55% is applicable on motor cars with an engine capacity not exceeding 1,000 c.c., provided that the motor car is cleared on or before 30 June 2023, as per item 3 of Sub-Part B of Part IA of the First Schedule to the Excise Act;

      2. An excise duty concession of 45% is applicable on motor cars with an engine capacity exceeding 1,000 c.c, provided that the motor car is cleared on or before 30 June 2023, as per item 4 of Sub-Part B of Part IA of the First Schedule to the Excise Act.

    2. Motor Cycles

      The rate of Excise duty and taxes on motor cycles is as follows:

      Internal Combustion Engine (Petrol or Diesel)
      Engine Capacity Rate of Excise Duty VAT
      Up to 300 cc 0% 15%
      Above 300 cc to 450 cc 45% 15%
      Above 450 cc 100%  15%
       
      Electric Motor Vehicles 0% 15%
      Hybrid Motor cycles 0% 15%
    3. Other Motor Vehicles

      The rate of excise duty and taxes on other motor vehicles is as follows:

        Rate of Excise Duty VAT
      Other hybrid or electric motor vehicles including Vans, Trucks and Pick-ups 0% 15%
  2. Assessment of value for second hand motor vehicles

    Users are informed that the value of second-hand vehicles attracting excise Duty are computed based on the FOB value of previously imported identical vehicles reduced by 9% for the first month of use and 1% for each subsequent month up to a maximum of 50%.

    In case the value as above is not available, the Retail Market Price data in the country of exportation when new, published in guide book or other similar publications on motor vehicles approved by the Director of Customs, reduced by 5%, and 9% for the first month of use and 1% for each subsequent month up to a maximum of 50%.

    The following websites and guide books have been approved for the assessment of FOB values:

    1. Websites

    2. Guide Books

      • JAAI Silver Book – Japan Used Car Price Guide Book
      • Parkers Guide Books
      • Japanese Motor Vehicles Guide Books
      • Glass Guide (UK)
      • Auto Dealers’ Guide Book ( South Africa)

    For motor vehicles imported from Japan, the FOB value can be assessed using the Online Second-Hand Vehicle Valuation System.

    In case you have any difficulty in using this IT application or you need any further clarification, you may contact the Second Hand Vehicle (SHV) Unit on Tel +230 202 0500 (Ext: 7085) or by email on This email address is being protected from spambots. You need JavaScript enabled to view it..

  3. Calculation of excise duty exempted and payable by beneficiaries of 100% excise duty exemption on a motor car of higher engine capacity

    1. Objective

      The purpose of this guide is to assist beneficiaries of 100% excise duty exemption who opt to purchase a motor car of higher engine capacity of up to 2,250 cc over and above their entitlement on the method of calculation of the excise duty exempted and payable

      NOTE:

      • For beneficiaries of partial excise duty concession (i.e. 70%) on a motor car, please refer to "Guidelines for Beneficiaries of 70% Excise Duty Concession."

      • Hybrid and electric motor cars are not subject to excise duty (zero rated) and as such excise duty concession/exemption is not applicable on such cars.

    2. Rate of excise duty on motor cars

      1. Motor cars indicated in the table below attract ad-valorem excise duty specified under Part I of the First Schedule the Excise Act.
        Motor cars with an internal combustion engine (Petrol or Diesel)

        Rate of Excise Duty (%)

        Up to 550 c.c 0
        551 - 1000 c.c 45
        1,001 – 1,600 c.c 50
        1,601 – 2,000 c.c 75
        2,001 – 2,250 c.c 100
      2. Motor cars described under the respective items of Part IA of the First Schedule to the Excise Act shall be subject to the amount of concession of excise duty as specified therein, provided the conditions as laid down under the respective items are fulfilled.

      3. Concessions under item 3 of Sub-Part B (55% concession on a motor car with an engine capacity not exceeding 1,000 c.c) and under item 4 of Sub-Part B (45% concession on a motor car with an engine capacity exceeding 1,000 c.c) of Part IA of the First Schedule to the Excise Act, shall not apply to a motor car in respect of which another concession is granted under Part IA of the First Schedule to the Act or any other enactment.

    3. Conditions for excise duty exemption

      1. Beneficiaries who opt for a motor car with the same or a lower engine capacity than their present entitlement, they shall be entitled to the amount of concession as specified in Sub-Part B of the First Schedule to the Excise Act.

      2. Beneficiaries who opt to purchase a car of a higher engine capacity shall pay the difference in excise duty and taxes.

    4. Method of calculation of the excise duty exempted and payable for beneficiaries of 100% excise duty exemption who opt to purchase a motor car of higher engine capacity of up to 2,250 cc over and above his entitlement.

      The amount exempted and payable is calculated as follows:

      The CIF (Cost, Insurance and Freight) value for the car opted for, shall be apportioned in the ratio:

      'Present entitlement engine capacity in cc' divide by 'opted engine capacity in c.c' and multiply by 'CIF of the motor car opted', hereinafter referred to as "CIF A"

      CIF A = Present entitlement engine capacity in c.c / Opted engine capacity in c.c X CIF of the motor car opted

      The amount of excise duty exempted on the opted engine capacity is calculated as follows:

      Amount of excise duty  exempted on the opted motor car = CIF A X Rate of excise duty applicable to the motor car with engine capacity as his present entitlement

      The amount excise duty payable on the opted engine capacity is calculated as follows:

      Amount of excise duty payable on the opted motor car = CIF of the motor car opted X Rate of excise duty applicable to the motor car opted - Amount of excise duty  exempted on the opted motor car

    5. Example

      An officer benefits from excise duty exemption on a motor car with an engine capacity not exceeding 1,500 cc and is entitled to an amount of exemption of 100% of the excise duty payable. He opts to buy a 2,200 c.c petrol engine motor car for a value for duty purposes of Rs 900,000.

      The amount of excise duty exempted and payable shall be calculated as follows:

      Apportioned CIF A

      Excise duty exempted

      Excise Duty payable

      VAT Payable

      = 1,500/2,200 X 900,000

      = 613,636 X 50%

      = (900,000 X 100%) – 306,818

      = (900,000 + 593,182) X 15%

      = Rs 613,636

      = Rs 306,818

      = Rs 593,182

      = Rs 223,977

      For any further information and assistance, you may contact the Motor Car Corridor on 202 0500 Ext 7070 or 7073.

  4. Guidelines for beneficiaries of 70% excise duty concession

    1. Objective

      The purpose of this guide is to assist beneficiaries of 70 % excise duty concession on motor cars of up to 1400cc, under the PRB Report 2021 and eligible staff managed by the Roman Catholic Education Authority and Hindu Education Authority.

      Note: Please consult the guideline on "Calculation of Excise Duty Exempted and Payable by Beneficiaries of 100% Excise Duty Exemption on a Motor Car of Higher Engine Capacity" for the main features concerning the method of calculation of excise duty exempted and payable for beneficiaries of 100% excise duty exemption who opt to purchase a motor car of higher engine capacity than their present entitlement.

    2. Conditions for excise duty concession
      1. 70% excise duty concession is granted to certain grades of officers under the PRB Report 2021 and eligible staff managed by the Roman Catholic Education Authority and Hindu Education Authority. They are entitled to the amount of concession as specified in Sub-Part B of Part IA of the First Schedule to the Excise Act, provided the conditions as laid down under the respective items are fulfilled.

      2. The 70 % is limited to a motor car of engine capacity of 1,400 c.c only. Officers who opt to purchase a car of a higher engine capacity than his normal entitlement subject to a maximum of 2,250 c.c shall pay the difference in excise duty and taxes.

      3. Officers may opt to purchase a car of engine capacity of up to 1,200 c.c with 100% of excise duty exemption up to a maximum of Rs 200,000.

      4. Officers who purchase a car of engine capacity of up to 1,200 c.c and opt for 100% of excise duty exemption up to a maximum of Rs 200,000, shall not be allowed to exercise further option to purchase a car of higher engine capacity.

      5. Officers whose grades are listed in Annex II of PRB Report 2021 and officers falling under the categories of Item 21 and 22 of Sub-Part B of Part IA of the First Schedule to the Excise Act, the renewal of duty-free exemption shall be every 7 years. All other 70% excise duty concessions shall be once in a career.

      6. Officers who qualify for a higher rate of excise duty exemption on a car shall, in the first instance, take advantage of the enhanced benefit and only after seven years may opt for deferred renewal for higher rate of duty exemption. The deferred renewal to purchase a duty exempted car with rate of excise duty shall be 8 years at 85% and 9 years at 100%, provided that the beneficiary has foregone his car allowance in lieu of duty exemption.

      7. Officers eligible for 70% and 85% excise duty concession shall benefit from Rs 115,000 excise duty exemption, should the excise duty exemption based on 70% or 85% be less than Rs 115,000.

      8. Officers who reckon not less than 5 years’ service and draw a monthly basic salary of Rs 31,000 or more and have benefitted from excise duty concession of up to Rs 150,000 on a motor car with an engine capacity not exceeding 1,400 c.c shall not be entitled to another concession under 70% on a car of engine capacity of up to 1,400 cc or 100% duty exemption on a car of engine capacity of up to 1,200 cc when they reckon at least 22 years’ service and in receipt of a monthly salary Rs 39,350 or more, and vice-versa.

    3. Officers who have benefitted 100% or 70% duty remission on a motor car every 5 or 7 years as the case may be, may be granted full or partial exemption of excise duty and taxes on another motor vehicle, provided that-

      1. the 4-year period from the date he benefitted from the exemption has not expired;

      2. he submits an application for exemption;

      3. he pays the full amount of excise duty and taxes which he has benefitted from;

      4. the exemption is under the same exemption regime as that which was previously granted to him and the beneficiary is still eligible to benefit from that exemption; and

      5. the motor car is cleared within 6 months from the date of payment of the full excise duty and taxes.

    4. Calculation of the excise duty payable and exempted for beneficiaries of 70% excise duty concession

      The amount exempted and payable is calculated as follows:

      The CIF (Cost, Insurance and Freight) value for the car opted for, shall be apportioned in the ratio:

      'Present entitlement engine capacity in c.c' divide by 'opted engine capacity in c.c' and multiply by 'CIF of the motor car car opted', hereinafter referred to as "CIF A"

      CIF A = Present entitlement engine capacity in c.c / Opted engine capacity in c.c X CIF of the motor car opted

      The amount of excise duty exempted on the opted engine capacity is calculated as follows:

      Amount of excise duty exempted on the opted motor vehicle = CIF A X Rate of excise duty applicable to the motor vehicle with an engine capacity as his present entitlement X Applicable rate of excise duty concession

      The amount excise duty payable on the opted engine capacity is calculated as follows:

      Amount of excise duty payable on the opted motor car = CIF of the motor car opted X Rate of excise duty applicable to the motor car opted - Amount of excise duty exempted on the opted motor car
    5. Example

      An officer benefits from excise duty concession on a motor vehicle with an engine capacity not exceeding 1,400 cc and is entitled to an amount of concession of 70% of the excise duty payable on the motor car or Rs 115,000, whichever is higher. He opts to buy a 2,200 c.c petrol engine motor car for a value for duty purposes of Rs 900,000.

      The amount of excise duty exempted and payable shall be calculated as follows:

      Apportioned CIF A

      Excise duty exempted

      Excise Duty payable

      VAT Payable

      = 1,400/2,200 X 900,000

      = 572,727 X 50% X 70%

      = (900,000 X 100%) – 200,455

      = (900,000 + 699,545) X 15%

      = Rs 572,727

      = Rs 200,455

      = Rs 699,545

      = Rs 239,932

      For any further information and assistance, you may contact the Motor Car Corridor on 202 0500 Ext 7073 or 7074.

  5. Guidelines for claim for negative excise duty on electric motor cars and electric goods vehicles

    1. General

      An individual who has, during the period starting on 1 July 2022 and ending on 30 June 2023, purchased an imported electric motor car or electric goods vehicle for home consumption, may make a claim to the Director-General for an amount to be paid to him in the sum of 10 per cent of the value at importation or 200, 000 rupees, whichever is the lesser.

      Note:

      1. Claim for negative excise duty can be made by an individual purchaser only;

      2. It is applicable on electric motor cars and electric goods vehicles imported for home consumption only.

    2. Types of electric motor cars and electric goods vehicles concerned

      1. Electric motor car, which find classification under the following HS Codes:

        8703.80.11, 8703.80.12, 8703.80.91 or 8703.80.92.

      2. Electric Goods Vehicles, which find classification under the following HS Codes:

        8704.60.11, 8704.60.12, 8704.60.13, 8704.60.14, 8704.60.15, 8704.60.16, 8704.60.17, 8704.60.18, 8704.60.21, 8704.60.22, 8704.60.23, 8704.60.24, 8704.60.31, 8704.60.32, 8704.60.33, 8704.60.34, 8704.60.35, 8704.60.41, 8704.60.42, 8704.60.43, 8704.60.44, 8704.60.45, 8704.60.51, 8704.60.52, 8704.60.61 or 8704.60.62.

    3. Requirements to be fulfilled by an applicant for the claim
      1. The application shall be submitted to MRA Customs not later than 30 days from the date of purchase of the electric motor car or electric goods vehicle;

        "Date of purchase" means the date on which a deed of sale has been registered with the Registrar General’s Department with respect to an electric motor car or electric motor vehicle for the transport of goods, as the case may be, which has been purchased by an individual.

      2. An individual entitled to make a claim for refund shall make an application in the approved form MRA/CUS/ASS/MVC/FORM 3, which can be downloaded from the MRA website on the following link: https://www.mra.mu/download/NegativeExciseDuty.pdf.
      3. One application shall be made for each electric motor car or electric goods vehicle purchased;

      4. The following documents to be submitted together with his application:

        • Copy of national identity card (NIC)/passport;

        • Bank statement showing account number and name of applicant;

        • Copy of sale contract for purchase of electric motor car or electric goods vehicle duly registered with the Registrar-General’s Department;

        • Copy of bill of entry (if any); and

        • Any other document that may be required.

      5. The duly filled form, together with all documents, must be submitted on e-mail address This email address is being protected from spambots. You need JavaScript enabled to view it.. and

      6. Any application will be considered null and void in case the applicant fails to submit the required documents within 15 days from the date of the application.

    4. Method of calculation of negative excise duty on an electric motor car and electric goods vehicle.

      Amount to be paid = 10% of the value at importation or Rs 200,000, whichever is the lesser
    5. Example

      1. An individual purchased an imported electric motor car for home consumption having a value at importation of Rs 1,600,000.

        10% of the value at importation

        Amount to be paid to him

        = 10% x 1,600,000 = Rs 160,000

        = Rs 160,000

      2. An individual purchased an imported electric motor car for home consumption for a value at importation of Rs 2,500,000.

        10% of the value at importation

        Amount to be paid to him

        = 10% x 2,500,000 = Rs 250,000

        = Rs 200,000

      For any further information and assistance, you may contact the Motor Car Corridor on 202 0500 Ext 7070 or 7073.