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Seychelles set to reduce excise tax for hybrids to encourage eco-friendly purchases

Victoria, Seychelles | November 8, 2023, Wednesday @ 10:52 in Business » FINANCE | By: Sedrick Nicette Edited By: Betymie Bonnelame | Views: 5306
Seychelles set to reduce excise tax for hybrids to encourage eco-friendly purchases

Full hybrid vehicles with an engine capacity of less than 1600cc will have the excise tax for importation reduced from 12.5 percent to 10 percent, with no environmental levy (Philip Ødegård/flickr) Photo License: CC BY-ND 2.0

(Seychelles News Agency) - The price of buying a new hybrid car in Seychelles will be reduced next year following tax changes announced by the government for 2024. 

The changes for the excise tax and the application of an environmental levy were announced during the 2024 budget address made by finance minister Naadir Hassan on November 3, with the main change made for hybrid vehicles and also twin cab pick-up trucks. 

In a press conference on Tuesday afternoon, the principal secretary for trade, Francis Lebon, explained that the changes that have been announced will encourage more people to buy hybrid vehicles, which is better for the environment. 

“We want to switch the behaviour of people to buying more fuel-efficient cars, with less impact on the environment,” said Lebon. 

According to the Department of Trade, the changes will see hybrid vehicles with a battery capacity of 200 V or more, to be classified as a full hybrid, where the excise tax and environment levy will be reduced. 

That means, full hybrid vehicles with an engine capacity of less than 1600cc will have the excise tax for importation reduced from 12.5 percent to 10 percent, with no environmental levy, while those between 1600cc to 2000cc, will have an excise tax of 50 percent compared to the actual 75 percent, with the environmental levy going down to SCR50,000 ($3,755) from SCR100,000 ($7,511). 

“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),” explained senior trade officer, Angelique Adeline. 

For those vehicles over 2500cc, they will see their excise tax reduced from 100 percent to 75 percent, with an environmental levy of SCR100,000 ($7,511), down from SCR175,000 ($13,290). 

“This means that other hybrid vehicles that have a battery capacity lower than 200v, will see their excise tax and levy the main,” continued Adeline, who also explained that for plug-in hybrid vehicles, they will all have a percentage reduction of 5 percent on excise tax, with no environment levy. 

Excise tax on twin cabs currently 50 percent will be reduced to 40 across all engine capacities. (Seychelles News Agency)  Photo License: CC-BY 

Twin cab pick-up trucks

Other changes announced were with regards to twin cab pick-up trucks, whose prices are typically much higher than other trucks. 

Lebon explained that with many small and medium contractors using such vehicles, the department realised they were far too expensive when taxes and levies were added. 

It was explained that the excise tax that is currently 50 percent to 100 percent based on 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. 

“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),” added Adeline during the press conference.

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Tags: taxes, finance, Department of Trade, hybrid, environmental levy

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