Budget 2025-2026 at a Glance Exploring options like Car Rental Mauritius 2025-2026 can help make travel plans more efficient.
On 6 June 2025, the Mauritian Minister of Finance delivered a reform-heavy Budget aimed at curbing vehicle imports, boosting revenue, and nudging the nation toward sustainable mobility. For the Car Rental Mauritius ecosystem—including Liberta—these measures rewrite the cost calculus of every kilometre we drive. Key levers include:
- Steep excise and customs duties on vehicle imports.
- A 30 % jump in first-registration duty.
- Higher Motor Vehicle Licence (MVL) fees.
- A lower VAT threshold that forces more small operators into compliance.
Together they create both headwinds and fresh strategic openings for agile players.
Surging Excise & Customs Duties
Mauritius has long used excise policy to shape its car fleet. The 2025-2026 Budget intensifies that approach:
Conventional Vehicles: 45 % – 100 % Tariffs
Diesel and petrol passenger cars now attract duties starting at 45 % for engines under 1 000 cc and peaking at 100 % for units above 2 000 cc. For Liberta, a typical mid-size sedan imported at Rs 800 000 CIF will see total landed cost swell to more than Rs 1,4 million once the new duties, VAT and registration are added.
Hybrid & Electric: The Return of 15 % – 75 %
The Budget re-introduces excise on greener tech:
- Electric: 15 % (≤ 180 kW), 25 % (> 180 kW).
- Plug-in hybrids: 15 % – 55 %.
- Non-plug-in hybrids: 25 % – 75 %.
Although lower than diesel or petrol, these new charges erase the zero-duty advantage enjoyed since 2018 and extend fleet pay-back periods by 6-12 months.
Fleet-Cost Scenarios for Liberta Car Rental
| Vehicle Type | Pre-Budget Landed Cost (Rs) | Post-Budget Landed Cost (Rs) | Δ % |
|---|---|---|---|
| 1,200 cc Petrol Hatch | 1 000 000 | 1 450 000 | +45 % |
| 1,600 cc Plug-in Hybrid SUV | 1 600 000 | 2 080 000 | +30 % |
| 120 kW Electric Sedan | 1 800 000 | 2 070 000 | +15 % |
(The table assumes CIF price parity and excludes MVL.)
Liberta’s procurement team is already modelling longer depreciation cycles (from four to five years) and diversifying into compact-class electric models to keep average duty below 25 %.
Registration Duty Hike of 30 %
From 1 July 2025 the duty payable when a brand-new car is first registered in Mauritius rises by 30 %. Pre-owned domestic transfers, however, become duty-free—an incentive to trade within the local pool.
Strategic response: Liberta is negotiating local dealer buy-backs, allowing near-new vehicles rotated into our fleet without the first-registration premium.
Motor Vehicle Licence (MVL) Fee Increase
Annual MVL fees now range Rs 200 to Rs 4 000, depending on engine capacity, and—crucially—the 50 % discount for hybrids and EVs disappears on 1 July 2025.
For a 65-vehicle fleet, Liberta’s MVL expense rises roughly Rs 90 000 per year. The company is offsetting this by:
- Extending oil-change intervals through manufacturer-approved synthetic lubricants.
- Installing telematics to cut idling time by 12 %.
VAT Net Widens: Threshold Falls to Rs 3 Million
Effective 1 October 2025, any operator with taxable turnover above Rs 3 million must register for VAT (previously Rs 6 million).
Smaller Car Rental Mauritius firms will face fresh administrative load: quarterly returns, input-VAT tracking, and potential cash-flow gaps. Liberta—already VAT-registered—plans to offer SaaS-based accounting bundles to its affiliate network, creating a cooperative compliance ecosystem.
Strategic Implications for Liberta Car Rental
Re-engineering Pricing and Packages
- Dynamic day-rates: Instead of a flat Rs 1 600 daily, Liberta will float rates based on demand curves, passing through peak-season costs while rewarding off-peak bookings.
- All-inclusive bundles: Duty and MVL surcharges are baked into a transparent “no-surprise” quote, enhancing trust amid price confusion in the broader Car Rental Mauritius market.
Smart Fleet Procurement & Lifespan Optimisation
- Target ≤ 1 200 cc segment for new acquisitions—duty ceiling 45 %.
- Leverage lease-back agreements with finance houses to conserve upfront capital after duty spikes.
- Extend de-fleet mileage from 80 000 km to 110 000 km, guided by rigorous preventive maintenance.
Sustainability & “Green” Differentiation after the Subsidy Loss
Although fiscal sweeteners have shrunk, Liberta doubles down on its eco-pledge:
- Carbon-offset add-on: Customers may offset trip emissions for Rs 90; proceeds fund native-forest restoration.
- Solar EV charging: A 50 kW rooftop array at the SSR Airport counter slashes grid draw, buffering electricity cost volatility.
- Public education: In-car quick-start guides teach energy-saving driving—reinforcing the brand’s responsible ethos.
Digital Transformation & Cash-Flow Management
VAT compliance is easier with automation:
- Adopt cloud ERP integrating booking engine, inventory, and e-invoicing.
- Implement AI-driven demand forecasting to align fleet size with booking horizons, unlocking 8 % reduction in idle vehicles.
- Introduce mobile payment links that collect deposits instantly, trimming DSOs (days-sales-outstanding) and smoothing VAT remittances.
Opportunities Hidden in the Challenges
- Premium micro-mobility: Import duty on electric motorcycles remains modest; Liberta tests e-scooter add-ons for coastal tourists.
- Local long-term leases: As personal car ownership costs soar, six- to twelve-month corporate rentals become viable.
- Pre-owned sales channel: Abolished transfer duty means stronger resale margins for ex-fleet vehicles, improving total cost of ownership.
Frequently Asked Questions
- Will Liberta raise its prices immediately?
We anticipate a modest adjustment of 8 %-12 % from August 2025. - Can tourists reclaim VAT on car rentals?
Under current rules, passenger-vehicle VAT is not refundable to tourists in Mauritius. - Does the higher MVL mean extra paperwork for renters?
No. Liberta handles licensing; the fee is embedded in your rental quote. - Is it cheaper to rent a hybrid now?
Hybrids remain competitive on fuel, but upfront rental rates will narrow compared with petrol models. - How does the Budget influence airport pick-up service?
Airport concession fees are unchanged, so our complimentary meet-and-greet continues uninterrupted.
Conclusion & Key Takeaways
The 2025-2026 Budget redraws the road map for every Car Rental Mauritius operator. Excise duty hikes, MVL increases, and the tighter VAT net squeeze margins but also reward innovation and efficiency. Liberta Car Rental’s proactive strategy—data-driven pricing, diversified fleet composition, and green-tech investments—positions us to keep your journeys smooth and affordable, even on this bumpier fiscal terrain.
Ready to explore Mauritius with confidence?
Book your next ride with Liberta Car Rental—where smart mobility meets transparent value.
