IONNEWS IONNEWS 1 month ago

Fuel, Taxes, and Charging: Where Do Electric Vehicles Stand in Mauritius?

Fuel, Taxes, and Charging: Where Do Electric Vehicles Stand in Mauritius?

The rising fuel prices continuously bring the question of energy alternatives in the transportation sector in Mauritius to the forefront. In April 2026, the price of a liter of petrol increased from Rs 58.45 to Rs 64.25, while diesel rose from Rs 64.80 to Rs 71.25, following a decision by the Petroleum Pricing Committee. In a country that heavily relies on imported petroleum products, these adjustments fuel discussions around various mobility options, including electric vehicles.

The 2025-2026 budget marked a significant change in the tax regime applicable to electric vehicles. Authorities reintroduced excise duties of 15% on models with a power output not exceeding 180 kW and 25% on those exceeding this threshold. This measure ended the exemption that this category of vehicles previously enjoyed.

The previous budget also resulted in the elimination of the Negative Excise Duty Scheme, which allowed individuals purchasing an electric vehicle to receive financial assistance of up to Rs 200,000, depending on the vehicle's specifications. This measure is no longer applicable to new purchases.

Another change introduced in the budget framework is the removal of the preferential rate granted to electric and hybrid vehicles under the Motor Vehicle License. Owners of these vehicles are now subject to the same regulations as other vehicle categories.

Despite these fiscal changes, some characteristics specific to electric vehicles remain unchanged. These vehicles do not consume petrol or diesel and rely on a different engine type compared to thermal vehicles. The operating and maintenance costs may vary depending on the models, driving habits, and usage conditions.

The development of charging infrastructure continues to accompany market evolution. Several public and private initiatives have been established over the years to expand the charging station network across the country and support the gradual integration of electric vehicles.

As the 2026-2027 budget approaches, electric vehicles remain a topic of discussion within the context of transportation policies, taxation, and energy transition. The measures introduced in the previous budget have altered the framework applicable to this category of vehicles, particularly regarding taxation and purchase incentives.

Between tax evolution, acquisition costs, and the development of charging infrastructure, electric vehicles maintain a presence in the discussions surrounding mobility and the energy transition in Mauritius.