BUDGET HIGHLIGHTS
Executive Summary
The 2026-2027 Budget focuses on economic transformation, digital innovation, sustainable growth, fiscal discipline and social development. The strategy is centred on creating a more competitive, technology-driven and resilient economy while maintaining support for vulnerable households and investing in long-term national priorities.
For businesses, the most important themes are artificial intelligence, SME and start-up support, infrastructure investment, food security, tourism diversification, the blue economy, environmental resilience, tax changes and pension reform.
Artificial Intelligence and Digital Transformation
Artificial Intelligence and digitalisation are positioned as key drivers of future economic growth.
• National AI skills development programmes.
• AI training and support for teachers, students, public officers and businesses.
• Establishment of a National AI Learning Platform.
• Development of national AI governance guidelines and cybersecurity infrastructure.
Support for Start-ups and SMEs
Several measures are aimed at strengthening entrepreneurship and supporting small businesses.
• Introduction of a dedicated Start-Up Act.
• A 10-year income tax holiday for qualifying start-ups.
• Creation of a Start-Up Council and accelerator programmes.
• Innovation funding for university entrepreneurs.
• A single digital platform providing information on grants, incentives and funding opportunities available to SMEs.
Investment and Infrastructure
The Budget includes substantial investment in national infrastructure and economic development.
• Development of a high-tech Special Economic Zone at Cote d'Or.
• Expansion and modernisation of port infrastructure.
• Investment in airport upgrades and digital border control systems.
• Road infrastructure expansion to improve connectivity and economic development.
Agriculture and Food Security
Food security has been identified as a national priority through the 25by35 Food Security Project.
• Expansion of agricultural production capacity.
• Promotion of agroforestry and climate-resilient farming.
• Support for livestock production
• Expansion of contract farming initiatives.
• Development of a National Food Reserve Storage Facility.
Tourism
The tourism strategy is evolving towards higher-value and more sustainable tourism offerings.
• Nature-based tourism.
• Eco-tourism.
• Cultural and heritage tourism.
• Wellness tourism.
• Community-based tourism initiatives.
• Support for the development of eco-integrated tourism villages across Mauritius.
Blue Economy
The Blue Economy remains a strategic growth sector.
• Establishment of an International Centre for Ocean Studies.
• Expansion of fisheries and aquaculture activities.
• Support for seaweed farming and marine innovation.
• Development of fish farming zones and hatchery infrastructure.
Environmental Sustainability
Significant resources are allocated to environmental protection and climate resilience.
• Coastal erosion adaptation projects.
• Shoreline rehabilitation programmes.
• Wetland conservation and dune restoration.
• Development of a National Shoreline Management Strategy.
• Establishment of a Just Transition Commission.
Tax Highlights
| Area | Measure |
| Value Added Tax | No increase in the VAT rate. |
| Personal Income Tax | A new 35% tax rate will apply to taxable income exceeding Rs 12 million per annum. |
| Excise Duties | Increases announced for tobacco products, spirits and hard liquor, and sugar-sweetened products. |
| Insurance Premium Tax | A new 5% Insurance Premium Tax will apply to short-term insurance policies from 1 January 2027.
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Pension Reform
A series of reforms have been announced to strengthen the long-term sustainability of the pension system.
• Basic Retirement Pension to be renamed State Age Pension.
• Greater flexibility in accessing pension benefits between ages 60 and 70.
• Introduction of income-based pension calibration mechanisms.
• Establishment of a National Pension and Provident Fund.
Housing and Social Development
• Expansion of affordable housing programmes.
• Support for low- and middle-income home ownership.
• Increased investment in water infrastructure.
• Expanded healthcare, education and social welfare programmes.
Renewable Energy
• Expansion of solar power generation.
• Rooftop solar support schemes for households.
• Enhanced feed-in tariffs for electricity supplied to the national grid.
• Long-term target of a 60% renewable energy mix by 2035.
Economic Outlook
• Continued economic growth.
• Ongoing reduction of the budget deficit.
• A gradual decline in public debt levels over the medium term.
Conclusion
The 2026-2027 Budget focuses on building a future-ready economy through investment in technology, entrepreneurship, infrastructure, sustainability and human capital development. Businesses and investors should monitor developments in AI, SME support, renewable energy, agriculture, tourism and the blue economy, which have been identified as key drivers of future growth.
Disclaimer: This summary is intended as a high-level overview of the key measures announced in the 2026-2027 Budget and should not be relied upon as tax, legal or financial advice. Specific advice should be obtained before acting on any of the measures referenced above.