Law Makers Approve Excise Tax Regime 

February 13 , 2020


Lawmakers have passed today the excise tax proclamation with four opposition and seven votes abstaining.

The bill, which has been back and forth with multiple responses between the Budget & Finance Affairs Standing Committee and the Ministry of Finance, was approved today during the session that was attended by 320 MPs. The legislated proclamation has a number of changes from the initially proposed bill.


Imported vehicles manufactured between one to two years are subjected to a 55pc excise tax, a drop from the 80pc rate that was proposed initially. Used cars that are coming to the country after serving between two and four years are subjected to 105pc excise tax by the new rate, a cut from the initial 130pc.

Vehicles that served for no less than four years but not longer than seven years are subjected to 205pc excise tax, which is reduced from the 230pc proposed rate. Cars with the age of over seven years will also be taxed 405pc in excise tax, a slash from the initial 430pc.

The new tax rates will be applicable after six months.


Share This Post




Editorial





Drop us a message

Or see contact page