Motor Vehicles
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Rate of excise duty and taxes on motor vehicles
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Motor Cars (for the transport of not more than 10 persons, including the driver)
Types of motor cars Rate of Excise Duty VAT With only internal combustion engine motor cars Up to 550 cc 0% 15% 551 - 1,000 cc 45% 15% 1,001 - 1,600 cc 55% 15% 1,601 - 2,000 c.c. 75% 15% Above 2,000 c.c. 100% 15% Mild hybrid motor cars Up to 550 cc 0% 15% 551 - 1,000 cc 25% 15% 1,001 - 1,600 cc 35% 15% 1,601 - 2,000 cc 55% 15% Above 2,000 cc 75% 15% Hybrid motor cars Up to 550 cc 0% 15% 551 - 1,000 cc 25% 15% 1,001 - 1,600 cc 35% 15% 1,601 - 2,000 cc 55% 15% Above 2,000 cc 75% 15% Plug-in hybrid motor Cars Up to 550 cc 0% 15% 551 - 1,000 cc 15% 15% 1,001 - 1,600 cc 25% 15% 1,601 - 2,000 cc 35% 15% Above 2,000 cc 55% 15% Electric Motor Cars Power rating not exceeding 180 kW 15% 15% Power rating exceeding 180 kW 25% 15% -
Motor Cycles
Types of motorcycles Rate of Excise Duty VAT With only internal combustion engines motorcycles Up to 300 cc 0% 15% Above 300 cc to 450 cc 45% 15% Above 450 cc 100% 15% Hybrid Motor cycles 0% 15% Electric Motor cycles 0% 15% -
Pick-ups
Type of Pick-ups Rate of Excise Duty VAT With only internal combustion engine pick-ups Single space cabin 10% 15% Double space cabin 30% 15% Hybrid pick-ups Single space cabin 5% 15% Double space cabin 20% 15% Plug-in hybrid pick-ups Single space cabin 5% 15% Double space cabin 15% 15% Electric pick-ups Single space cabin and power rating not exceeding 180 kW 5% 15% Single space cabin and power rating exceeding 180 kW 5% 15% Double space cabin and power rating not exceeding 180 kW 10% 15% Double space cabin and power rating exceeding 180 kW 15% 15% -
Vans
Types of vans Rate of Excise Duty VAT With only internal combustion engine vans Refrigerated vans 0% 15% Vans with no bench or anchor points behind the front seats 10% 15% Up to 1,600 cc 55% 15% 1,601 cc - 2,000 cc 75% 15% Above 2,000 cc 100% 15% Hybrid vans Refrigerated vans 0% 15% Vans with no bench or anchor points behind the front seats 5% 15% Up to 1,600 cc 35% 15% 1,601 - 2,000 cc 55% 15% Above 2,000 cc 75% 15% Electric vans Refrigerated vans 0% 15% Vans with no bench or anchor points behind the front seats and a power rating not exceeding 180 kW 5% 15% Vans with no bench or anchor points behind the front seats and a power rating exceeding 180 kW 5% 15% Vans with a power rating not exceeding 180 kW 15% 15% Vans with a power rating exceeding 180 kW 25% 15% -
Lorries
Types of lorries Rate of Excise Duty VAT With internal combustion engine lorries Lorries imported in a completely knocked-down condition 0% 15% Refrigerated lorries 0% 15% Lorries 10% 15% Hybrid lorries Refrigerated Lorries 0% 15% Lorries 5% 15% Electric lorries Refrigerated Lorries 0% 15% Lorries 5% 15% -
Buses (for the transport of 10 or more persons, including the driver)
Types of buses Rate of Excise Duty VAT Operating under a road service licence and used for the transport of the general public buses 0% Exempt Electric buses 5% 15% Plug-in hybrid buses 10% 15% Hybrid buses 15% 15% With internal combustion engine buses 20% 15%
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- Assessment of value for second hand motor vehicles
Users are informed that the value of second-hand vehicles attracting excise Duty are computed based on the FOB value of previously imported identical vehicles reduced by 9% for the first month of use and 1% for each subsequent month up to a maximum of 50%.
In case the value as above is not available, the Retail Market Price data in the country of exportation when new, published in guide book or other similar publications on motor vehicles approved by the Director of Customs, reduced by 5%, and 9% for the first month of use and 1% for each subsequent month up to a maximum of 50%.
The following websites and guide books have been approved for the assessment of FOB values:
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Websites
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Guide Books
- JAAI Silver Book – Japan Used Car Price Guide Book
- Parkers Guide Books
- Japanese Motor Vehicles Guide Books
- Glass Guide (UK)
- Auto Dealers’ Guide Book ( South Africa)
For motor vehicles imported from Japan, the FOB value can be assessed using the Online Second-Hand Vehicle Valuation System.
In case you have any difficulty in using this IT application or you need any further clarification, you may contact the Second Hand Vehicle (SHV) Unit on Tel +230 202 0500 (Ext: 7085) or by email on This email address is being protected from spambots. You need JavaScript enabled to view it..
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Calculation of excise duty exempted and payable by beneficiaries of 100% excise duty exemption on a motor car of higher engine capacity
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The purpose of this guide is to assist beneficiaries of 100% excise duty exemption understand how the amount of excise duty exempted and payable is calculated when they opt to purchase a motor car with a higher engine capacity—up to 2,250 cc—over and above their present entitlement.
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Conditions for excise duty exemption
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Motor cars described under the respective items of Part IA of the First Schedule to the Excise Act shall be subject to the amount of concession of excise duty as specified therein, provided that the conditions as laid down under the respective items are fulfilled.
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Beneficiaries who opt for a motor car with the same or a lower engine capacity than their present entitlement, shall be entitled to the amount of concession as specified in Part IA of the First Schedule to the Excise Act.
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Beneficiaries who opt to purchase a car of a higher engine capacity shall pay the difference in excise duty and taxes.
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Method of calculation of the excise duty exempted and payable for beneficiaries of 100% excise duty exemption who opt to purchase a motor car of higher engine capacity - up to 2,250 cc - over and above their entitlement.
The amount exempted and payable is calculated as follows:
The CIF (Cost, Insurance and Freight) value for the car opted for, shall be apportioned in the ratio:
'Present entitlement engine capacity in cc' divided by 'opted engine capacity in cc' and multiply by 'CIF of the motor car opted', hereinafter referred to as "CIF A"
CIF A = Present entitlement engine capacity in cc / Opted engine capacity in cc X CIF of the motor car opted
The amount of excise duty exempted on the opted engine capacity is calculated as follows:
Amount of excise duty exempted on the opted motor car = CIF A X Rate of excise duty applicable to the motor car with engine capacity as his present entitlement.
The amount excise duty payable on the opted engine capacity is calculated as follows:
Amount of excise duty payable on the opted motor car = CIF of the motor car opted X Rate of excise duty applicable to the motor car opted - Amount of excise duty exempted on the opted motor car
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Example
An officer is entitled to a 100% excise duty exemption on a motor car with an engine capacity not exceeding 1,500 cc. He opts instead to purchase a 2,200 cc petrol motor car, valued for duty purposes at Rs 900,000.
The amount of excise duty exempted and payable shall be calculated as follows:
Apportioned CIF A
Excise duty exempted
Excise Duty payable
VAT Payable
= 1,500/2,200 X 900,000
= 613,636 X 55%
= (900,000 X 100%) – 337,500
= (900,000 + 562,500) X 15%
= Rs 613,636
= Rs 337,500
= Rs 562,500
= Rs 219,375
For any further information and assistance, you may contact the Motor Vehicle Corridor on 202 0500 Ext 7070 or 7073.
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Guidelines for beneficiaries of 70% excise duty concession
- Objective
The purpose of this guide is to assist beneficiaries of the 70 % excise duty concession on motor cars of up to 1400cc under the PRB Report 2021, including eligible staff managed by the Roman Catholic Education Authority and the Hindu Education Authority.
- Conditions for excise duty concession
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A 70% excise duty concession is granted to certain grades of officers under the PRB Report 2021, as well as eligible staff managed by the Roman Catholic Education Authority and the Hindu Education Authority. They are entitled to the amount of concession as specified in Sub-Part B of Part IA of the First Schedule to the Excise Act, provided the conditions as laid down under the respective items are fulfilled.
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The 70 % applies only to motor cars with an engine capacity of 1,400 cc. Officers who opt to purchase a car of a higher engine capacity than his normal entitlement up to a maximum of 2,250 cc -shall pay the difference in excise duty and taxes.
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Officers may opt to purchase a motor car of engine capacity of up to 1,200 cc with an excise duty exemption up to a maximum of Rs 200,000.
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Officers who purchase a motor car of engine capacity of up to 1,200 cc and claim the excise duty exemption up to a maximum of Rs 200,000, shall not be allowed to opt for a motorcar of higher engine capacity.
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Officers listed in Annex II of PRB Report 2021 and those falling under Items 21 and 22 of Sub-Part B of Part IA of the First Schedule to the Excise Act, are entitled to renew their duty-free exemption every 7 years. All other officers eligible for the 70% excise duty concession may only claim it once in their career.
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Officers who qualify for a higher rate of excise duty exemption on a car shall, in the first instance, take advantage of the enhanced benefit. After 7 years, they may opt for deferred renewal at a higher rate of duty exemption. The deferred renewal periods are 8 years at 85% and 9 years at 100%, provided that the beneficiary has foregone their car allowance in lieu of duty exemption.
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Officers eligible for 70% and 85% excise duty concession shall benefit from Rs 115,000 excise duty exemption, if the concession amount based on 70% or 85% is less than Rs 115,000.
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Officers who reckon not less than 5 years’ service and draw a monthly basic salary of Rs 31,000 or more, who have already benefitted from excise duty concession of up to Rs 150,000 on a motor car with an engine capacity not exceeding 1,400 c.c shall not be entitled to another concession under 70% on a car of engine capacity of up to 1,400 cc or an excise duty exemption of up to Rs 200, 000 excise duty exemption on a car of engine capacity of up to 1,200 cc when they reckon at least 22 years’ service and in receipt of a monthly salary Rs 39,350 or more and vice-versa.
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An officer who has benefitted 100% or 70% duty remission on a motor car every 5 or 7 years as the case may be, may be granted full or partial exemption of excise duty and taxes on another motor vehicle under Section 6 of the Customs Tariff Act, provided that-
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the 4-year period from the date he benefitted from the exemption has not expired;
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he pays the duty, excise duty and taxes computed proportionately by reference to the time remaining due out of the 4-year period for the exemption which was previously granted to him; and
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the officer complies with the following conditions:-
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he submits an application for the exemption;
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the exemption is under the same exemption regime as that which was previously granted to him;
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he is still eligible to benefit from that exemption; and
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the motor car is cleared within 9 months from the date of payment of the proportionate duty, excise duty and taxes.
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Calculation of the excise duty payable and exempted for beneficiaries of 70% excise duty concession
The amount exempted and payable is calculated as follows:
The CIF (Cost, Insurance and Freight) value for the car opted for, shall be apportioned in the ratio:
'Present entitlement engine capacity in c.c' divide by 'opted engine capacity in c.c' and multiply by 'CIF of the motor car opted', hereinafter referred to as "CIF A"
CIF A = Present entitlement engine capacity in c.c / Opted engine capacity in c.c X CIF of the motor car opted The amount of excise duty exempted on the opted engine capacity is calculated as follows:
Amount of excise duty exempted on the opted motor vehicle = CIF A X Rate of excise duty applicable to the motor vehicle with an engine capacity as his present entitlement X Applicable rate of excise duty concession The amount excise duty payable on the opted engine capacity is calculated as follows:
Amount of excise duty payable on the opted motor car = CIF of the motor car opted X Rate of excise duty applicable to the motor car opted - Amount of excise duty exempted on the opted motor car -
Example
An officer is entitled to a 70% excise duty exemption on a motor car with an engine capacity not exceeding 1,400 cc. He opts instead to purchase a 2,200 cc petrol motor car, valued for duty purposes at Rs 900,000.
The amount of excise duty exempted and payable shall be calculated as follows:
Apportioned CIF A
Excise duty exempted
Excise Duty payable
VAT Payable
= 1,400/2,200 X 900,000
= 572,727 X 55% X 70%
= (900,000 X 100%) – 220,500
= (900,000 + 679,500) X 15%
= Rs 572,727
= Rs 220,500
= Rs 679,500
= Rs 236,925
For any further information and assistance, you may contact the Motor Vehicle Corridor on 202 0500 Ext 7073 or 7074.
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