Seychelles to change excise tax to encourage green transportation
The government of Seychelles has announced a reduction in excise tax for the purchase of hybrid cars in 2024 following a recent change in the country’s tax policy.
Finance Minister Naadir Hassan announced the changes in excise tax and application of an environmental levy while addressing the country on the 2024 budget on November 3, 2023, Seychelles News Agency reports.
The new reduction policy will apply primarily to hybrid vehicles and twin cab pick-up trucks, the report added.
Senior Trade Officer Angelique Adeline explained that “for those over 2000cc but not more that 2500cc, they will see their excise tax reduced from 100 percent to 75 percent, with their environmental levy going down to R75,000 ($5,695) from R175,000 ($13,290)".
"This means that other hybrid vehicles that have a battery capacity lower than 200v, will see their excise tax and levy maintained… With these changes on twin cabs, we now expect such a vehicle that was being sold for SCR1.3 million ($99,145), will now be available for as little as SCR860,000 ($65,588),” she was quoted by Seychelles News Agency.
The Department of Trade indicates that the initiative is aimed at encouraging an environmentally friendly transport system. Thus, hybrid vehicles with a battery capacity of 200 V or more are to be classified as full hybrid, where the excise tax and environment levy will be reduced.
The excise tax that is currently 50 percent to 100 percent based on the engine capacity of the truck, will now be reduced to 40 percent across all engine capacities, with the environmental levy, which was between SCR70,000 ($5,338) to SCR175,000 ($13,290), will also now be fixed at SCR40,000 ($3,050), regardless of engine capacity.
