Electric vehicles are duty free in Mauritius!

Mauritius is one of the best places to do business in Africa and has been for a long time. Before the World Bank interrupted its “The ease of doing business” report, Mauritius was ranked 1st in Africa and 13e globally. Although the World Bank said it halted the Ease of Doing Business report “after data irregularities on Doing Business 2018 and 2020 were reported internally in June 2020”, Mauritius has still been one of the top-ranked countries, which in a way still shows the country was leading the continent on that front.

Centurion Lawyers and Business Advisors states that “Mauritius remains one of the most business-friendly countries in the Sub-Saharan Africa region, with sound economic policies and prudent banking practices, suited to domestic and foreign entrepreneurs and investors. Mauritius also has one of the most generous tax regimes in the world. Personal and corporate taxes are harmonized at a low 15% and dividends are tax exempt. Mauritius has also concluded double taxation agreements with 33 countries. Mauritius has now decided to expand its impressive fiscal policies to catalyze the adoption of electric mobility. Since July 1, 2022, all hybrid and electric vehicles are now tax-free in Mauritius. This was announced earlier this year by Finance Minister Renganaden Padayachy in his 2022-23 budget speech.

The Mauritian government has also introduced a rebate on the excise duty regime of 10% for the purchase of electric vehicles by individuals up to a maximum of Rs 200,000 ($4,500). These incentives were introduced as part of the “Accelerating The Land Transport Electric Vehicles Transition” program under which the government wants to further reduce its dependence on the import of petroleum products, decarbonize the land transport system and accelerate the transition to electric vehicles. electric vehicles. It makes so much sense for an island nation that relies on imports to fuel ICE vehicles.

The government is also working to increase the penetration of locally produced renewable energy. They have a target of 60% energy coming from renewable sources by 2030. The power of incentives for the electric mobility sector is well known. Norway has led the way over the past decade and today the share of electric vehicles in Norway is consistently above 85%. China is another example where incentives really sparked the electric vehicle revolution. In Africa, Rwanda introduced a wide range of impressive incentives last year.

It’s really good to see another African country introduce incentives for electric vehicles. Mauritius is a member of the Southern African Development Community (SADC) of which South Africa, the continent’s largest automotive market, is also a member. We hope that South Africa can learn from its SADC member state. In South Africa, electric vehicles are still subject to higher import duties and taxes than internal combustion engine vehicles, which is really strange in 2022.

Most electric vehicles are still priced higher than their ICE counterparts and will therefore cost significantly more when they land in Africa after shipping and import duties. Removing import duties for electric vehicles will be one of the fastest ways to ensure consumers have access to more affordable electric vehicles. Mauritius and Rwanda are leading the way in Africa. I hope that South Africa, Kenya, Zimbabwe and the rest of the countries of the African continent will follow soon.

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