As part of transforming Mauritius into a sustainable and inclusive economy, several decisions have been announced by Finance Minister Renganaden Padayachy in his 2022-23 Budget Speech on Tuesday 7th of June. Here are some of the measures:

For starters,  all hybrid and electric vehicles will be sold duty-free from 1st July this year.  This is in line with the government’s attempt in creating a greener and better Mauritius for future generations.

Also, in an attempt to further boost the automotive market, he announced that a negative excise duty scheme of 10% up to a maximum of Rs 200,000 will apply to individuals buying electric vehicles. In parallel, the excise duty scheme on motor vehicles of 40% rebate for a motor car of up to 1000 cc and 30% rebate on other vehicles will be extended to 30th of June 2023.  

In addition, no duty will be imposed on cars, spare parts and automobilia imported for exhibition in a motor museum

The main thrust of the government’s strategy is to attain a carbon neutrality level at the earliest through a three-pronged action: reduction of dependence on import of petroleum products, decarbonising the land transport system and acceleration of electric vehicle transition. Hence, 200 electric buses will be acquired to renew half of the National Transport Corporation fleet. As of the next financial year, the Bus Modernisation Scheme will apply only to electric buses.

The IFCM will provide concessionary leasing at 3.5 % per annum to companies renewing their company fleet to electric vehicles only while the DBM will provide 0.5 % loan of up to Rs 3 million to taxis and van operators over a period of seven years for the purchase of electric vehicles.

60% homegrown renewable energy

As regards the Metro Express, it will be fully operational on the Port Louis corridor and between Rose Hill and Reduit before the end of 2022. It will implement photovoltaic farms at its Richelieu Depot, at Barkly and Ebene Recreational Park to cater for its electricity needs.

It is expected that these 2022-23 Budget measures will speed up the transition to a more secure and cleaner homegrown energy supply with the projected target of reaching 60% energy from renewable sources by 2030. This will bolster the country’s determination towards a cleaner, greener and more climate-resilient environment.