New legislation - Trouble around the carbon tax

This is what comes down the implementation of the tax on carbon emissions from vehicles. Neither customs nor the specialized garages are prepared for this change. Since July 13, the date of the adoption of the Excise (Amendment) Bill, to date, the Ministry of Finance and the Mauritius Revenue Authority are not yet developed the mechanism for the implementation of the carbon tax on vehicles.

Mauritians returning to the country with their vehicles are the first victims of this lack of forward planning. Their vehicles are stuck at customs.

Currently, the biggest problem is the test for carbon. Mrinal Teelock, Executive Secretary of the Motor Vehicle Dealers Association, and Subhadi Bala, director of Garage Bala, are adamant: "No one can perform this test in Mauritius." For the Executive Secretary of the MVDA, do not be fooled: "These tests are carried out in specific conditions." For this reason, the MVDA approached the car manufacturers to obtain a certificate of CO2 emissions for the various car models and different capacities. This initiative was taken not to penalize buyers of cars emitting less than 158 grams of CO2 per km, which should receive discount.

Meanwhile, the director of Garage Bala criticizes the government: "To my knowledge, to date, there is no device in Mauritius can provide the data required by the new law on CO2 emissions. The authorities have acted exactly as he had done for the new license plates," says Bala Subhadi. Indeed, the devices available to different garages and various ministries and departments concerned with emissions of carbon dioxide, only indicate the volume of CO2. Not the number of grams emitted per kilometer as stipulated in the Excise (Amendment) Bill.

Tariffs Before July 13 Capacity

Less than 1600 cc       55%

Over 1600 cc               100%

After July 13 Capacity    

Less than 1 600 cc      55% 

1 600 to 2 000 cc        75%

Over 2000 cc               100%

"I just checked the rate of CO2 emissions of some vehicles and the volume is zero. This, logically, is correct. In addition, two dealers have approached me to check vehicles. Tests can be successful, but unfortunately I can not issue certificate because I can, with the camera I own, ensure that the vehicles are not polluting. I would be outside the law," he adds. The director of Garage Bala argues that it has conducted research on the Internet for a conversion table volume in grams per kilometer, but without success. He now hopes to get a device that can calculate the number of grams of CO2 per kilometer.

Carbon tax CO2 emission     Tax set 

159 g - 190 g / km                  Rs 2000 / g 

191 g - 225 g / km                  Rs 3000 / g 

226 g - 290 g / km                  Rs 4000 / g 

Over 290 g / km                      Rs 5000 / g

Refunds 

Up to 90 g / km           Rs 3000 

91 g - 158 g / km        Rs 1000 ,

However, to Customs, it is shown that the SGS can perform this test. Moreover, the Customs Service account to send a few cars to determine their rate of carbon emissions. "The assessment of the level of CO2 can be done locally, as there is an international database of producers," said another part of the customs. It concedes that it is not easy to handle the situation with a law passed in haste.

"It's difficult for us and we must now explain the new formula with partners, including dealers," he says. The top part of the Customs admits that the computer system for customs declaration has been reconfigured to include carbon tax. "We currently have an intermediate system. We are confident we can solve this problem as soon as possible," he says.

'Returning To Resident '- Rs 538 200 carbon tax claimed

Wednesday, a Mauritian established in England for two decades has fallen from the clouds. The Customs Service has made a claim of Rs 538,200 for a carbon tax as a Land Rover diesel consuming. "I can not believe this figure. For this vehicle, I have benefited from duty-free facilities of Rs 440 000. However, I am asked to pay Rs 538,200, "says he. 

This Mauritian who are preparing to settle permanently in Mauritius to be the victim of an injustice. For the simple reason that his car came to the country in mid-June. Customs clearance procedures are so long that it has received its Import Permit as July 14. The day after the adoption of the law governing the carbon tax. "It's unfair, because when my car was unloaded, the law did not exist. They can not penalize me. If this law was in force, I weighed the pros and cons before making my car, "says he. 

Our caller said the exhausted going back and forth between her she should do forwarder, Customs and the Ministry of Finance. "It's total confusion. Nobody knows what to do with my file. My point is simple: my car was in the country before July 13," does it show.

In a letter to Chief of Staff of the Ministry of Finance, she recounted his misadventure: "My container was fully examined on July 11.2011 for delivery and I got my personal effects only July 12.2011. However, for our motor cars we have had to wait for MRA evaluation Customs Dept to Assess the value of our vehicles. This was done on 13th July, 2011 and on the same day I have to apply for our Import Permits. The application of the Import Permits can not be submitted earlier due to the condition that we have to submit our bill of entries together with our applications. 

Import Permits for our cars were granted to us on 14th July, 2011. Malthus, we were able to process for the customs clearance of our motor vehicles accordingly, as per our BOE. 42011166364 / 42011166319 and 0 / 0 dated 14-07-2011.Unfortunately, the MRA-Customs clearance of the IS holding our vehicles we arguing that should have to abide above the Excise Amendment Act 2011 as we do not fall in the categories of importers which are exempted to the above, our import permit insisting That Were Approved on 14th July, 2011. "

Brand Model Year Engine EXCISE VAT CO2 Carbon Tax  Cap (g / km) DUTY (RS) (RS) (RS)

 Volkswagen Beetle     2005    1596cc            185      157      136.00            66        425.00 62       100.00

Land Rover Discovery 2005    2720cc            275     67        648.00 77       795.00             538      200.00 

Mercedes Benz                       2010    2987cc            260      274      104.00                        315      220.00                         469 200.00

Two cases figure of

A 1500 cc car that emits 140 g CO2 per kilometre gets Rs 18,000 discount. It is Rs 1000 X (158-140).

CIF Rs 300.000

Duties (55%) Rs 165.000

Amount prior to the imposition of the tax Rs 465.000

Rs 1000 X (158 - 140) Rs 18,000

Price (excluding local taxes ) Rs 447.000

A 1500 cc car that emits 170 g CO2 per kilometer to pay Rs 24.000 carbon tax. 

Let X Rs 2000 (170-158)

CIF Rs 300.000

Duties (55%) Rs 165.000

Amount before imposition of tax Rs 465.000

Rs 2000 X (170-158) Rs 24.000

Price (excluding local taxes) Rs 489.000 

Legal Provisions

The Excise (Amendment) Bill seeks to amend the system of excise duty of cars based the ability of their engines, taking into account their emissions of carbon dioxide. Thus, it allows the imposition of a CO2 Levy or a 'CO2 rebate' is granted.

The cap on CO2 emissions will, by December 2012, 158 grams per kilometer. This same cap that will be used, but it will subsequently be revised to reflect the structure of imports of new cars. And calculation of CO2 emissions will be made ??jointly by the Ministry of Finance and the Mauritius Revenue Authority.

CO2 Levy said Pravind Jugnauth, will be taxable if the emission of carbon dioxide per km exceeds the threshold of 158 grams per kilometer . And the proposed rate is Rs + 2.000 gram / ??km for cars whose emission varies from 159 to 190 grams of CO2 per kilometer, + Rs 3.000 per gram / ??km for emissions from 191 to 225 grams of CO2 / km, + Rs 4,000 per gram / ??km for emissions from 226 to 290 grams of CO2 / km and Rs + 5.000 gram / ??km for emissions exceeding 290 grams of CO2 per kilometer. The amount will be paid in Indeed, the difference between the number of grams of CO2 per km 'of a car and the ceiling of 158 grams CO2 per kilometer, multiplied by the rate of CO2. For example, for a car that emits 168 grams / km, is an amount of Rs 20,000 which will be paid. On the other hand, the rebate is calculated in the same way.

Moreover, to remove an anomaly on the taxation of 'double space cabin vehicles', now a vehicle of this type that is fully assembled is subject to a' excise rate 'of 40% while a vehicle that is imported separately from the housing is subject to an' excise rate 'of 10%. And, today, announced the Minister of Finance, a flat rate of 20% will be applied.

If the bill has the support of the Opposition, there is, however, questions that arise. What will it take to other types of vehicles such as buses, trucks, factories, the CEB, the independent power producers? Also, do companies or taxis, for example, will not pass the additional cost to customers? But just to summarize, the finance minister said he will find a formula to other types of vehicles.

The vagueness

Teelock Mrinal, the Executive Secretary of the MVDA, is a blur in the law relative to cars already ordered. "We have made practical suggestions so that the new price can be put into practice because it will take time to receive the documents requested from manufacturers," says Mrinal Teelock.

MVDA The hopes that the situation will be clarified at a meeting scheduled Wednesday, with the technicians of the Ministry of Finance.

Meanwhile, Zaid Ameer, president of the Dealers in Imported Vehicles Association, is the vagueness about the vehicles that are already in the port or the 'bonded showroom'. "There are a lot of confusion at the customs during the week. Getting back to the wall, Customs seeks to return the ball in the Ministry of Finance. This is the cacophony!" said Zaid Ameer. The president blames the DIVA blur to a lack of consultation: "No consultation, no exchange of ideas and therefore difficulties in implementation. "