Major Tax Measures Unveiled for Economic Growth and Social Progress

The recently presented Budget Speech for the fiscal year 2024-2025 has introduced several significant tax measures aimed at fostering economic growth, reducing inequalities, and promoting social progress. Here are the major tax measures announced:

• Introduction of a Corporate Climate Responsibility (CCR) levy of 2% for companies with a turnover equal to or more than Rs 50 million.
• Replacement of the flat tax regime with a progressive and fairer tax system, including a maximum tax rate of 20%.
• Individuals earning up to Rs 30,000 monthly will no longer pay income tax.
• Tax exemptions for interest on bonds issued by the government.
• Tax deductions for private school fees and charitable donations.
• Refund of 25% under the 'Small Business Digital Champion Scheme' for investments in new technologies and equipment.
• Investment tax credit of 15% over 3 years extended to include AI and patents.
• Payment Intermediary Services (PIS) Licence Holders to benefit from the Partial Exemption Regime.
• Review of the Fund and Asset Manager Certificate to include at least 2 qualified officers.
• Review of the Funds Regime to enhance the attractiveness of the jurisdiction.
• Exploration of a Strategic Partnership Agreement (SPA) with India and African countries to strengthen the Mauritius International Financial Centre.
• Removal of fees associated with the use of the MAUCAS platform to encourage the adoption of digital payments.

These tax measures aim to create a favorable business environment, attract investment, and support social welfare in Mauritius. The government's focus on sustainability is evident through the introduction of the CCR levy and incentives for renewable energy. Additionally, measures to increase exemptions and deductions for individuals demonstrate the government's commitment to social inclusiveness and support for vulnerable groups.

The successful implementation of these tax measures, along with effective policy enforcement and collaboration between the public and private sectors, will be crucial in achieving the government's vision of an inclusive and sustainable Mauritius. As the country moves forward, striking a balance between economic growth and social progress will be essential to ensure a prosperous future for all Mauritians.