The government has announced plans to ease restrictions on foreign-used vehicle imports, aiming to make car ownership more affordable for citizens.
Finance Minister Davendranath Tancoo said the current government intends to reverse what he described as “restrictive policies” imposed by the previous administration, which he said contributed to rising vehicle costs.
“An increase in the permissible age of importation of private cars, that is, SUVs, sedans and station wagons, which are powered by petrol, diesel or CNG from three years and under to six years and under. Secondly, an increase in the permissible age of importation of light commercial vehicles, that is, pickups and panel vans from seven years and under to ten years and under.”
He said this measure will take effect from January 1st 2026.
The Finance Minister also announced new duties and taxes on ‘high-end’ electric vehicle imports, pointing out that significant foreign exchange had been used to import luxury electric vehicles that currently attract no customs duty.
“I propose the following on vehicles whose CIF value exceeds $400,000. A rate of duty of 10%, VAT of 12.5%, and a tiered rate of motor vehicle tax applicable to the electric motor size will be applied on vehicles whose CIF value exceeds $400,000. At the current demand, this initiative will contribute an additional $40 million to revenues.”
This measure will also take effect on January 1st 2026.