Réunion Modifies Sea Duty Tax Rates to Boost Purchasing Power and Green Transition

The Réunion region has adjusted the rates for the 'octroi de mer,' a consumption tax, to bolster purchasing power and support ecological transition. Unlike VAT, this tax excludes essential goods. The changes, effective March 1st, aim to expand the list of everyday consumer products with zero or low rates, promote sustainable development by adjusting rates based on environmental impact and energy efficiency, and address public health by increasing rates on tobacco and alcohol (excluding local production). Vehicle taxes are now based on CO2 emissions, differentiating between electric, hybrid, and combustion engines, and appliance taxes are based on energy consumption ratings. The region and the Price, Margin, and Revenue Observatory (OPMR) have agreed to inform the public and evaluate the impact of these changes. The region also advocates for similar VAT efforts from the state on essential goods.