Home Economy SINCE TUESDAY: RECONDITIONED CARS, MOST EXPENSIVE OF RS 50,000 TO RS 100,000

SINCE TUESDAY: RECONDITIONED CARS, MOST EXPENSIVE OF RS 50,000 TO RS 100,000

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That’s it, the new regulations announced in the 2016-2017 Budget, which drive up prices between Rs 50,000 and Rs 100,000 reconditioned cars, applied since 1 November 2016. The importers continue to press for a return back from the government.

If you are buying a second-hand car, you will definitely pay between Rs 50,000 and Rs 100,000 more. Since Tuesday, November 1, 2016, new regulations announced in the 2016-2017 Budget came into force. Remember, these budget measures aim to rebalance the Mauritian car market between the new vehicles and those reconditioned.

Thus two main measures take effect. This is the first suspension of the carbon tax. The latter applied on the most polluting vehicles. The aim was to encourage the purchase of cars that emit less carbon dioxide (CO2) including less fuel. To do this, these greener vehicles on the contrary enjoyed a bonus lowering their rates.

The second factor that increases the price of reconditioned cars is the new assessment method. According to Zaid Ameer, president of Imported Vehicles Dealers in Association (DIVA), since 2003, was removed 25% at list prices reconditioned vehicles to calculate their rates and therefore the amount of applicable taxes. These include 25% corresponded to the different taxes applicable in the exporting country. Since November 1, 2016, the rate rose to 5%.

“Take the example of a car that costs the equivalent of Rs 1 million in its country of origin. Previously, the price duty-Maurice was Rs 750 000. Today it will be Rs 995,000, “said Zaid Ameer.

In a showroom of the capital, a clerk explains to Daily Challenge that cars that are released on 1 November 2016 typically cost Rs 50,000 more. For Suzuki Swift previously displayed at Rs 560,000, it will therefore now pay Rs 610 000. For its part, the President of the DIVA considers that the rates will increase to Rs 100 000. He gives the example of a Nissan Micra whose price was Rs 420,000, which will now cost Rs 520,000.

However, reconditioned vehicle importers do not have to accept these new regulations. DIVA’s leaders met on Tuesday 1 November 2016 the Acting Minister of Trade, Industry and Consumer Protection, Prem Koonjoo.According to Zaid Ameer, the association has informed him of his wish to see the moratorium, which ended November 1, extended by several months. The President of the DIVA stresses in conclusion that importers have lodged an action in court challenging the new regulations.

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