Carbon Tax : The MVDA Estimated State Loss of Rs 600 m

It is the decision of the Mauritius Revenue Authority (MRA) to accept the 'fake' CO2 emission rate reported by importers of second-hand vehicles (refurbished) would be blamed. This was said a spokesman for the MVDA to the press on Thursday at a meeting with the Ministry of Finance.

A court decision should be made next week on an action in court against the MRA by MVDA. The association alleges that the MRA not obey the law. According to his spokesman, the MVDA suffered harm due to non-compliance by the MRA. He also points out that it distorts the automotive market.

The MVDA involves standards "mode and JC Cycle 10.15 08" which are used by importers of reconditioned vehicles from Japan and accepted by Customs for calculation of bonus to be granted to importers or penalty to be paid by them in that it is the carbon tax. These standards are more favorable than that required for new vehicles, namely, UNECE 101.

Thus, according to the spokesman of the MVDA, based on the statements of reconditioned car importers using standards mode and JC 10.15 Cycle 08, the MRA would unfairly distributed more than Rs 350 million in bonuses ('rebate') importers reconditioned vehicles in 2012 alone imported reconditioned vehicles for 5500.

Worse, as explained by its spokesman. While MVDA demand more equity, ie the application of a single standard, UNECE 101 for CO2 emission rates of new and reconditioned vehicles, the government has to amend the Excise Act in the Finance Bill 2012 stating that any standard specified by the Ministry of Finance can be used for vehicles reconditioned.

The spokesman of the MVDA rebelled against what he described as an insult to taxpayers and the MID project. He finds it unacceptable that come 'sponsor' the private business while the country needs money. Referring to climate change used to explain the recent flooding in Port-Louis, it indicates that you could buy two radars for weather if 'Excises Duty' had been correctly recovered by the State.