Mauritius Budget and the Impact on Motorists

Expectations were high ahead of the 2025 budget, particularly among motorists accustomed to incentives for electric and hybrid vehicles. While some green mobility support remains, the budget marks a shift away from ‘green incentives’. For many motorists, the overall cost of owning or importing a vehicle has increased. As a result, buyers may begin to focus more on economical, locally owned options in the months ahead.

Notable changes in vehicle costs:

• Removal of Rs 200,000 negative excise duty for electric vehicles

• Removal of 50% discount on vehicle licensing for electric and hybrid vehicles.

• Customs duties on conventional vehicles increase to between 45% - 100%

End of the Road for EV Rebates

One of the most significant changes is the removal of the Rs 200,000 Negative Excise Duty Scheme for electric vehicles. This incentive officially ends on 30 June 2025, making EVs more expensive from July onward.In addition, the 50 percent discount on Motor Vehicle Licence fees for electric and hybrid vehicles has been abolished. These vehicles will now pay the same MVL rates as petrol and diesel models.

Excise and Registration Duty Adjustments

Importers will face a 30 percent increase in registration duty on first-time vehicle registrations. On the other hand, registration duty has been abolished for local sales of pre-owned domestic vehicles, which is likely to boost the second-hand market.

• 15% tax for Electric vehicles up to 180 kW 

• 25% tax for Electric vehicles above 180 kW

• 35% import duty for plug-in hybrid vehicles

• 55% import duty for non-plug-in hybrids

• 75% import duty for conventional vehicles

Motor vehicle licencing fees

• A private car between 1,601 cc and 1,850 cc now pays Rs 10,000, up from Rs 8,500

• Vehicles registered under a company or trade name see even steeper increases

• Taxis, contract vehicles, motorcycles, and commercial vehicles are all affected

Administrative processes see some improvements

On a more practical note, the government has committed to modernising vehicle-related services. New Vehicle Registration and Transfer Centres are being launched, starting in Phoenix, with the goal of decentralising and streamlining services. The process for obtaining personalised registration marks will be fully digital, and a broader range of older registration numbers will also be made available. These upgrades are expected to improve convenience for motorists, but the benefit is largely overshadowed by the broader rise in vehicle ownership costs.