Removal of temporary increase of 25% in Excise Tax on motor vehicles as of 1st January 2022
December 09, 2021
As of 01st January 2022, the temporary increase of 25% in Excise Tax on motor vehicles carrying passengers will no longer be applicable.
The removal of the temporary tax is in line with the announcement made by the Minister for Finance, Economic Planning and Trade, Naadir Hassan, in his 2022 Budget address, on 12th November 2021.
The temporary additional Excise Tax came into effect on 1st January 2021, as per Schedule 1 of S.I 163 of 2020. Its removal, is as per Schedule 2 of the same S.I.
Furthermore, the Ministry wishes to further clarify that only Bills of Entry lodged as of the 1st January 2022 and onwards, will qualify for the reduction. That is: the reduction will not apply with respect to Bills of Entry lodged in the year 2021 and cleared in 2022.
For any further queries, please contact the Trade Division of the Ministry of Finance, Economic Planning and Trade on 4382135, or the CVO’s office of the Customs Division SRC on 4293779/4293764.