Applicable rates of Excise Tax on motor vehicles transporting passengers
January 06, 2022
As of 1st January 2022, the temporary additional 25% Excise Tax on motor vehicles for the transportation of passenger, has been removed.
The introduction of the temporary additional 25% Excise Tax was aimed at ‘mitigating the adverse impact of COVID-19 on the economy’, and also support the stabilization of the foreign exchange market during this difficult time.
However, the measure was only temporary as per S.I 163 of 2020, Excise Tax (Amendment of Schedule 1) (No.3) Regulations, 2020.
With the various measures in place to relaunch the economy, in September 2021, the government announced the additional tax will be removed as of 1st January 2022, as per the above S.I.
To note though, only bill of entry lodged as of the 1st January 2022 and onwards will qualify for the reduction.
Click on the link below for the the applicable rate of Excise Tax on motor vehicles as of 1st January, 2022 as per the schedule illustrated under sub-regulation 2(b) of above stated S.I; as illustrated in the below table: