Government has announced new measures to curb vehicle imports in the country. In a press release from Liberty House, the Ministry of Finance said the measures are two fold:

• A moratorium on new licences for car hire operators
• Imposition of a levy at the point of import on vehicles

The communiqué added that it was necessary to prioritise the country’s allocation and expenditure of foreign exchange especially in the light of rising food, fuel and commodity prices. It said vehicle imports in the Seychelles have been increasing in recent years adding that such capital imports are a major drain on the country’s hard currency reserves.

It was explained that many of these vehicles are actually imported into car hire businesses and that it was time to review the total number of vehicles in the country which are now putting pressure on the infrastructure especially the roads.

The levies would be structured with increasing amounts for cars with bigger engines. The rates to be applied are shown below:

Cars and twin cabs	Rates (SR)
0-1300 cc	25,000
1300-1600 cc	30,000
1600-2000	50,000
>2000 cc	100,000
>SR400,000 CIF value	200,000
Vehicles for transport of goods (heading HS Code 8704)	10,000
All other vehicles (e.g. ambulances, buses, special purpose, etc)	5,000

The measures are to come in force on 21st July 2008 and will be reviewed at budget time.