Madam Speaker, in the Budget Speech 2025-2026, I announced that the rates of excise duty on vehicles would be increased. This budgetary measure was implemented through a Financial Resolution passed on the day of the Budget, that is, 5th June 2025. This makes the increase in the rates of excise duty effective as from 6th June 2025. In a spirit of fairness, we provided a transitional period whereby a vehicle continued to be subjected to the old excise rate as was applicable, that is, prior to 6th June 2025, provided that – (i) the vehicle has been issued with an import permit or has been shipped or placed in a bonded warehouse before 6th June 2025 – there are two conditions, and (ii) was cleared from the Customs on or before 30th June 2025. Accordingly, after the transitional period, that is, from 01 July 2025, all vehicles cleared from Customs are being subjected to the new excise rates. Representations have been received from dealers of both new and second-hand imported motor vehicles through their respective associations. The ‘Motor Vehicle Dealers Association,’ which represents dealers of new imported motor vehicles requested in writing that the cut-off date of 30 June 2025 for the transitional period be extended by 6 months, that is, to 31 December 2025. The ‘Dealers in Imported Vehicles Association’, which represents second-hand imported vehicles, requested for a meeting with Government to discuss issues that they had on the transitional provision or the new tax rate on hybrid vehicles. Officers of the Ministry of Finance held a meeting on 25 June 2025 with representatives of the ‘Dealers in Imported Vehicles Association’, namely the Chairperson and two members. The latter made the following proposals – (i) to extend the cut-off date of 30 June 2025 to 30 September 2025 for cars already shipped as well as those not yet shipped, but for which an import permit had already been obtained before 06 June 2025; (ii) motor vehicles in respect of which applications for import permit had been made on 05 June 2025, that is, on Budget Day, be subjected to the old rate of excise duty, and

21 (iii) to extend the cut-off date of 30 June 2025 to 15 July 2025 for cars in bonded showrooms or warehouses due to administrative bottlenecks following a surge in the number of vehicles requiring clearance at the level of various government agencies. Madam Speaker, as regards to the extension of the cut-off date, I wish to highlight that the two Associations had requested different extension dates. Entertaining their requests would have accentuated the alarming rate of increase in vehicles on the road and defeated the very purpose of introducing that measure. Madam Speaker, I am informed by the Mauritius Revenue Authority that, during the transitional period, which we extended and lasted for 25 days, a total of 6,703 cars, of which, 4,093 were new and 2,610 imported second-hand cars were cleared by the Customs Department under the old rates of excise duty. I think these figures speak for themselves, Madam Speaker. The number of cars cleared during the transitional period represents more than three times the average monthly import in 2024, which was 2,020 cars. In fact, the number of cars cleared during the 25 days of the transitional period represents nearly 30% of the total number of imported cars in 2024 – total number. It is evident, therefore, that dealers in new and imported motor vehicles have been able to take full advantage of the transitional period. During the month of June 2025, imports of motor vehicles led to a total outflow of foreign currencies of around USD 200 million. This has impacted negatively on the trade deficit as well as the availability of foreign currencies on the forex market. Therefore, Government does not intend to extend the cut-off date of the transitional period.

Thank you, hon. Prime Minister. Yes!

Madame la présidente, est-ce que le Premier ministre peut expliquer à la Chambre pourquoi – même s’il a, dans sa réponse, donné beaucoup d’explications – un délai aussi court de seulement 24 jours a été imposé pour tout finaliser ? Alors qu’il faut entre six et huit semaines à un bateau pour arriver à Maurice, que ce soit depuis le Japon ou de l’Angleterre, par exemple.

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I must say, Madam Speaker, that there were discussions and many people wanted not to have a transitional period at all. The cut-off date had to be on Budget Day, that is, the next day, on 06 June. But we decided to give some time. As I mentioned, Madam Speaker, look at the number of cars that were imported during that short period, and how much the Government actually lost. But that is the way it is!

Une dernière question, Madame la présidente.

Oui, allez-y!

Donc, comme je l’ai dit, vu le temps que prennent les bateaux pour arriver à Port-Louis, le Premier ministre peut-il – malgré tout ce qu’il a dit et je l’ai bien compris – envisager d’accorder un délai raisonnable de 92 jours aux importateurs, comme cela avait été le cas pour une transaction similaire en 2016, à travers le G.N. 165 de 2016 en fait ?

In our case, the answer is no.

Très bien. Next question! Hon. Second Member for Rivière des Anguilles and Souillac! ANGUS ROAD, VACOAS – IMMOVEABLE PROPERTIES ACQUISITION – INVESTIGATION