HIGHLIGHTS BUDGET 2020 2021 - www.atax.mu - ATax | ATax Advisors Limited
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BUDGET 2020 - 2021
HIGHLIGHTS
www.atax.mu
1 Editorial
2 Key Economic Indicators
3
CONTENTS
Taxation
4 Pension
5 Construction Sector
6 Agricultural Sector
7 Other Sectors
EDITORIAL
Budget Speech 2020-2021: The COVID 19 Aftermath
Presenting a fair, progressive and re-energising National Budget during a time of unprecedented crisis was always
going to be a herculean task for any Minister of Finance. As we break down the components of this “new normal”, one
is left with little doubt that the economic recovery is going to be slow and painful after what the Minister himself calls
“the worst GDP contraction ever for our country”.
An impressive Rs 40bn has been earmarked for the construction sector. This may well be an important factor in boosting
the economic recovery whilst improving and modernising our infrastructure, addressing social housing needs and
encouraging employment in that sector. The proposals for the agricultural and manufacturing sector show a genuine
commitment to encourage self-sufficiency, sustainability and local production. In addition, loans with 0.5% interest
rates will be made available to distressed companies in the agricultural sector and SMEs and a monthly allowance of
Rs 5,100 will be granted 6 months to those who are made redundant.
A raft of other measures aimed at further facilitating doing business in Mauritius, encouraging data technology,
revamping, strengthening and overcoming the challenges faced by the financial services sector and improving our
public health infrastructure – to name a few – have been announced.
But will these be sufficient in rebooting a weak and contracted economy?
On the Tax front, the lack of increase in the standard VAT rate is a welcome measure, as are the targeted tax holidays
in specific sectors, the non-negligible increases in the Income Exemption Thresholds and the rebates on duties payable
on vehicles.
However, one may legitimately wonder whether this is a budget that truly encourages Mauritian entrepreneurship
and which promotes attracting the Mauritian diaspora when tax and levies on income could reach up to 40%. One
may wonder if this is a budget which promotes employment where employers may find themselves (in addition to
contributing to the Portable Retirement Gratuity Fund) an additional 6% of an employee’s monthly salary with the new
Contribution Sociale Généralisée.
On the other hand (and this is perhaps a double-edged sword), a number of measures are aimed at attracting more
expatriates and foreigners to Mauritius: more relaxed permanent residency rules, land ownership in smart cities, ability
for spouses of an occupational permit holder to work and it would appear, no obligation to pay the new 25% solidarity
levy.
We also note that the Budget Speech is oddly silent on any further broadening of the partial exemption regime (first
implemented in 2018, with certain welcome additions last year).
We eagerly await this year’s Finance Act for the finer details of how the fiscal measures will be implemented.
1
Key
Economic
Indicators
2
Key Economic Indicators
TAXES SOCIAL OTHER OTHER CAPITAL
GRANTS
Rs 90.6 bn CONTRIBUTIONS REVENUE REVENUE
2020-2021
Rs 3 bn
Rs 4.3 bn Rs 37.9 bn Rs 27 bn
REVENUE
Rs 162.9 billion
2020-2021 Budget Deficit 2019-2020
EXPENDITURE 13.6% of GDP
Rs 162.9 billion
GENERAL PUBLIC RECREATION, SOCIAL
ECONOMIC ENVIRONMENTAL HOUSING AND HEALTH EDUCATION OTHERS
SERVICES, ORDER CULTURE AND PROTECTION
AFFAIRS PROTECTION COMMUNITY Rs 15.8 bn Rs 0.8 bn
& SAFETY Rs 12.4 bn RELIGION
Rs 12.2 bn AMENITIES Rs 47.8 bn
Rs 68.6 bn Rs 1.1 bn Rs 1.1 bn
Rs 3 bn
3
GDP Forecast for 2020
GDP Contraction up to 3% GDP Contraction up to 11%
4
Taxation
5
Income Tax
Deduction for Dependent
A taxpayer will be allowed to claim as dependent a bedridden next of kin who is in his care. He/she will thus benefit from
an additional annual deduction in the range of Rs 80,000 to Rs 110,000 provided that the total number of dependents
does not exceed 4.
Income exemption thresholds
CATEGORY 1 July 2019 to 30 June 2020 1 July 2020 to 30 June 2021
A. Individual with no dependent Rs 310,000 Rs 325,000
B. Individual with one dependent Rs 420,000 Rs 435,000
C. Individual with two dependents Rs 500,000 Rs 515,000
D. Individual with three dependents Rs 550,000 Rs 600,000
E. Individual with four or more dependents Rs 600,000 Rs 680,000
F. Retired/disabled person with no dependent Rs 360,000 Rs 375,000
G. Retired/disabled person with dependents Rs 470,000 Rs 485,000
Solidarity Levy
As from the income year 2020-2021, Solidarity Levy will be applied on the chargeable income plus dividends in excess
of Rs 3 million of a Mauritian citizen at the rate of 25%.
Lump sum income received by a person by way of commutation of pension, death gratuity or as compensation for
death or injury is excluded from the computation of the Solidarity Levy.
The Pay As You Earn (PAYE) system will apply to the Solidarity Levy.
Accelerated depreciation
Capital expenditure incurred on electronic, high precision machinery or equipment and automated equipment will be
allowed as a deduction in the year in which it is incurred instead of being amortised over more than two years.
Green technology equipment, which is depreciated over two years, will now include equipment and machinery used
for eliminating, reducing or transforming industrial wastes.
Double tax deduction on investment
Enterprises which have been affected by COVID-19 will be entitled to a double tax deduction on their investment in
Plant and Machinery during the period 1st March 2020 to 30th June 2020.
6Income Tax Holiday
A company engaged in the manufacture of nutraceutical products will be tax exempt for a period of 8 years provided
it starts its operations on or after 4th June 2020.
An inland aquaculture scheme will be introduced and will benefit an 8-year tax holiday.
To encourage the top 500 institutions worldwide to set up branch campuses in Mauritius, the following incentives will
be made available:
(i) Tax holiday for the first 8 years of operation; and
(ii) Exemption of tax on IT and IT related materials and equipment for the purpose of online education.
Solidarity Levy on Telephony Service Providers
The Solidarity Levy on telephony service providers of 5% of accounting profit and 1.5% of turnover, which was introduced
in 2009 and subsequently extended, will be made permanent.
A profitable company will pay 5% of its accounting profit and 1.5% of its turnover as Solidarity Levy.
A company which has not made profits will pay 1.5% of its turnover as Solidarity Levy.
Alternative Minimum Tax on companies carrying on life insurance business
A company carrying on life insurance business will pay tax based on the existing system of taxation or under an
alternative minimum tax, whichever is the higher.
The alternative minimum tax will be computed at the rate of 10% of profit attributable to shareholders adjusted for
capital gains or losses.
Partial Exemption Regime
The partial exemption regime on interest income does not cover:
(i) non-bank deposit taking institutions
(ii) money changers
(iii) foreign exchange dealers
(iv) insurance companies
(v) leasing companies; and
(vi) companies providing factoring, hire purchase facilities or credit sale facilities.
Levy on Corporates
A company, having gross income exceeding Rs 500 million in an accounting year or if it forms part of a group of
companies where the gross income of the group exceeds Rs 500 million, will be subject to a levy on its annual gross
income at the rate of:
(i) 0.3% for insurance companies, financial institutions, service providers and property holding companies
(ii) 0.1% for other companies
The levy will not apply to a company which operates in the tourism sector or which holds a Global Business License.
7Indirect Tax
Value Added Tax
The below goods have moved from Exempt to Zero-Rated:
(i) Unprocessed agricultural and horticultural produce
(ii) Live animals of a kind generally used as, or yielding or producing, food for human consumption other
than live poultry
(iii) Transport of passengers by public service vehicles excluding contract buses for the transport of tourists
and contract cars
(iv) Medical, hospital and dental services
Digital and electronic services provided through internet by non-residents for consumption in Mauritius will be subject
to VAT. This will be a new category of service under the VAT Act.
Equipment under the inland aquaculture scheme will be VAT exempt.
Payment of VAT will be due on the receipt date instead of invoice date for Government contracts in relation to
construction works.
Medical R&D centres will benefit from VAT exemption on construction materials and specialised equipment.
Customs Duty
• The exemption value for articles imported by post or courier services has reduced from Rs 3,000 to Rs 1,000, in
relation to customs duty and VAT.
• Customs duty on import of sugar increased from 80% to 100%.
Excise Duty
a. Sweetened beverages and products
As from 5 June 2020, sugar tax on sugar sweetened beverages has doubled from 3 cents to 6 cents per gram.
Sugar tax at 6 cents per gram will also be applicable to the below locally manufactured and imported non-staple
sweetened products with effect from 1 November 2020:
Biscuits Mixes and doughs for the preparation of bakers’ ware
Cereal products Pastries
Chocolates rusks, toasted breads and similar products
Crispbreads, gingerbreads Sugar confectionery (e.g. sweets, candies, chewing
gums, fruit jellies)
Food preparations of flour, groats and malt extract such Waffles and wafers
as custard powder and ovaltine
Fruits, nuts, fruit-peels and other parts of plants preserved Whey
by sugar (including drained, glacé or crystallised)
Ice creams Yoghurts, buttermilk
Jams, fruit jellies, marmalades, fruit or nut purées and
fruit or nut pastes
8b. Motor Vehicles
Vehicles which were in bonded warehouse before 5 June 2020 and cleared from Customs before 30 June 2021 will be
granted a rebate on the amount of customs/excise duty payable as follows:
Motor Vehicles Customs/Excise Duty Rebate
Motor car up to 1,000 cc Lower of:
• 40% of the excise duty payable; or
• Rs 100,000
Motor car 1,001 to 1,600 cc Lower of:
• 30% of the excise duty payable; or
• Rs 125,000
Buses, Double/ Single Space Cabin Vehicles and Vans Lower of:
• 30% of the customs/excise duty payable; or
• Rs 125,000
Tax Administration
a. Income Tax
Income tax refunds will be effected within 60 days from receipt of all documents for all taxpayers. Previously this was 3
months and 6 months in the case of employees and other cases, respectively.
To improve efficiency and transparency in service delivery to taxpayers, the MRA will develop further its e-services
platform.
b. Customs Act
A definition of “passenger” will be introduced to differentiate between a passenger, crew member and master of
an aircraft or ship in view of the forthcoming application at Customs of the Advanced Passenger Information and
Passenger Name Record system for risk management purposes.
The Principal Officer of a private company will be liable for any taxes due by the company.
A Principal Officer may be the executive director or any other person entitled to exercise the powers of the Board of
directors.
The deadline of 28 days to settle any underpayment of duties, excise duties, taxes and penalties will also be applicable
in the case of:
(i) Default on deferred payment facilities
(ii) Non-submission of cargo report for an aircraft or ship
(iii) Importation of selected prohibited goods
Aggrieved importer/manufacturer will have the right to appeal against a claim of underpayment from the MRA.
9• The same tariff classification as the finished good will apply to goods imported in multiple consignments or
shipments to be assembled into a complete finished good, such as a photovoltaic system or a greenhouse.
• Any customs declaration (Bill of Entry) upon imports will be deemed to be a self-assessment.
• Failure to give a cargo report in respect of the aircraft or ship, its cargo and passengers will be subject to a penalty
of Rs 500 per day, capped at Rs 5,000. Previously a fine not exceeding Rs 50,000 was charged on conviction.
• Public notice of actions taken by MRA Customs will be given for suspending clearance of imported goods or
detaining goods on the local market which are suspected of infringement of industrial property rights, whether
following an application by the rights holder or on its own initiative.
• MRA Customs will not suspend the clearance of imported goods or detain goods on the local market which are
genuine but have not been imported by the rights holder in case the goods:
(i) are imported for personal use in small non-commercial quantities or are in the luggage of a
passenger, master or crew.
(ii) were shipped before the date of a public notice issued by MRA Customs to the effect that
it has granted an application by a right holder for suspension/detention of goods infringing
industrial property rights provided the goods are imported within one year from the date of the
public notice; and
(iii) were in bonded warehouse or had already been manufactured in Mauritius for home-
consumption/export prior to the public notice.
• MRA Customs will not suspend nor detain future consignments similar to those previously suspended or detained
on grounds of suspected infringement of industrial property rights, where the rights holder does not initiate legal
proceedings for 2 consecutive cases during a period of 6 months.
• The MRA will be empowered to authorise a person from the company of a Freight Forwarding Agent, who has
been authorised to act as such prior to March 2006, to act as broker, provided that the person –
(i) has continuously worked for the Freight Forwarding Agent in the capacity of director or
employee related to the entry of goods from the time the authorization as agent was granted;
(ii) successfully completes a Recognition of Prior Learning Course conducted by MRA Customs;
and
(iii) is successful in an oral examination conducted by MRA Customs.
c. Customs Tariff Act
The exchange rate to be used for valuation purposes will, henceforth, be posted on the MRA website.
d. Value Added Tax Act
• The taxable value of a supply will be deemed to be its market value for transactions not at arm’s length.
• VAT-registered persons supplying both taxable and exempt supplies may apply for an alternative basis of
apportionment for input tax where it is engaged in a project spanning over several years. More guidance is
required on the alternative basis of apportionment.
• An administrator, executor, receiver or liquidator has to inform the MRA of his appointment within 15 days of him
being appointed to manage or wind up the business of a taxable person.
• For VAT refunds on residential building, claim for VAT refund of less than Rs 25,000 can be made where the
amount of VAT paid during a quarter and the preceding three quarters do not exceed Rs 25,000. This measure
aims to help persons at the lower rung whose constructions span over a long period.
• VAT e-invoicing system will be introduced by the MRA.
10e. Mauritius Revenue Authority Act
Failure to attend or be represented before the Assessment Review Committee will result in the aggrieve party being
struck out unless absence is due to illness or other reasonable cause.
f. Registrar-General’s Department
Sale of a residential unit by National Empowerment Foundation to an individual registered on the Social Register of
Mauritius will be exempt from registration duty
Gambling Regulatory Authority Act
• The definition of “Limited Pay out Machines” will include virtual, multiplayer station and/or stand-alone roulette
machine or other devices which comply with such technical standards as approved by the Board. The maximum
pay-out will be increased from Rs 5,000 to Rs 10,000.
• The section relating to the installation of a multi-terminal Limited Pay Out Machine on a premise will be repealed
since it will be covered in the wider definition above.
• Gambling Regulatory Authority (“GRA”) will be allowed to make regulations to define the manner in which the
Appeal Committee should operate.
• Every gaming machine on the premises of gaming machine operators is required to comply with such technical
standards as approved by the Board and gazetted;
• Gaming machines and the jackpot system of any gaming machine are required to be tested by gaming
laboratories approved by the Board.
• To prevent tampering, GRA Inspectors will be empowered to seal the mechanical meters, game box, jackpot
and logic area of a gaming machine.
• Operators should notify the GRA for the displacement of Limited Pay Out Machine. Previously GRA approval was
required.
• The definition of “sporting event” and other relevant sections will be amended to limit the conduct of fixed odds
betting to horse race and football league taking place outside Mauritius.
• Information to be furnished to GRA will be streamlined at the time of submission of an application for registration
of a sweepstakes retailer, lottery retailer or pool promoter.
• The Board will be empowered to approve new specified events for which an adhoc licence to carry out gaming
activities may be granted.
• Exempt from the requirement for police clearance with regards to the premise of a Limited Pay Out Machine
prior to the issue of a licence.
• Licensees will be allowed to sponsor activities for charitable, benevolent and social purposes.
• Computer-generated documents will be admissible evidence in any legal proceedings.
• Payment of Bookmaker licence for conducting fixed odds betting on any event or contingency other than a
local race will be allowed on a “yearly or part thereof” basis instead of 12 months’ basis.
• Offering or conducting bet related services without a valid licence will be considered an offence.
11• The tax rates for the below licensees changed as follows:
Licensee Duties and Taxes
From To
HORSERACING
Bookmaker conducting fixed odds 10% of gross stakes + Rs 24,000 in 12% of gross stakes
betting on local race at the race respect of each race meeting
course and
(a) where the bookmaker operates
inside the stand
(b) where the bookmaker operates 10% of gross stakes + Rs 16,000 in 12% of gross stakes
outside the stand respect of each race meeting
Bookmaker conducting fixed odds 10% of gross stakes + 12% of gross stakes
bet through remote communication
Rs 24,000 per week
Totalisator operator at the race 10% of gross stakes 12% of gross stakes
course, outside the racecourse, op-
erating bets through remote commu-
nication, conducting local race inter-
totalisator betting or conducting
foreign race inter-totalisator betting
FOOTBALL
Bookmaker conducting fixed odds 10% of gross stakes + Rs 24,000 per 12% of gross stakes
betting on foreign football matches week per place of business
OTHERS
Sweepstake organizer 10% of gross proceeds 12% of gross proceeds
Limited pay out machine operator 10% of gross takings or Rs 500,000, 12% of gross takings or Rs 1 million,
whichever is higher whichever is higher
Amusement machine operator Rs 5,000 Rs 500 per machine
Property Tax
Exemption from Registration Duty on Acquisition of a Newly-Built Dwelling
A Mauritian who acquires a newly-built dwelling during the period 1st September 2016 to 30th June 2020 for an amount
not exceeding Rs 6 million is eligible to full exemption from registration duty.
The Scheme will be extended for two years i.e. covering acquisition of a newly-built dwelling up to 30th June 2022.
Furthermore, the threshold value of a newly-built dwelling will be raised from Rs 6 million to Rs 7 million.
The exemption is also granted if the dwelling is purchased on the basis of a plan or during construction (i.e. under vente
à terme or vente en l’état futur d’achèvement).
12This exemption does not apply to a property on Pas Géométriques or within the Integrated Resort Scheme, Real Estate
Scheme, Property Development Scheme or Invest Hotel Scheme.
Exemption from Land Transfer Tax to a Promoter Undertaking Construction of Housing Projects for Mauritians
The construction of housing estate scheme will be extended as follows:
• the Scheme will run, from 1st July 2020 to 31st December 2020, for registration of projects comprising of at least 5
residential units with the MRA.
• no registration duty and land transfer tax will be payable on the transfer of freehold bare land for the construction
of housing estate project provided the land is transferred by 31st December 2020.
• construction must be completed before 31st December 2021; and exemption of land transfer tax will be granted
on the sale of a residential unit (including by way of ‘Vente en Etat Future d’Achèvement - VEFA’) provided it is
made to a Mauritian before 30th June 2022.
• In addition, the maximum price of Rs 6 million of a residential unit under the Scheme will be raised to Rs 7 million.
First-Time Buyer Exemption
Presently, a person is eligible to the first-time buyer registration duty exemption even if he or his spouse is or was the co-
owner of an immovable property acquired by inheritance provided the land area is less than 10 perches.
Henceforth, a person will be considered as a first-time buyer even if he or his spouse is or was the:
(i) owner of an immovable property acquired by inheritance where the land area is less than 20 perches;
or
(ii) co-owner of an immovable property acquired by inheritance where their share in that property is less
than 20 perches of land.
Duty Free Shops and Deferred Duty and Tax Scheme (DDTS) Shops
Duty Free Shops and DDTS shops will be allowed to sell goods on the local market without any limit on quantity but with
payment of duties and taxes up to 31st December 2021.
13Pension
14Proposed Key amendments to the Pension System:
• The introduction of the Contribution Sociale Généralisée (CSG) was announced. This measure dealt in the Budget
Speech will be effective as from September 2020.
• The salient features are as follow:
Monthly Earnings Employee contribution Employer Contribution
Up to Rs 50,000 1.5% 3%
More than Rs 50,000 3% 6%
• This new system will also extend to self-employed individuals.
• We understand that this will be in addition to the universal pension of Rs 9000.
• So far there is no indication of whether this contribution will be based on the basic salary of the employee and
the mechanisms for a self-employed person whose income may fluctuate from month to month.
• Consequently, in light of the above, the contributions to the NPF will be abolished and the first CSG payments
will be perceived in 2023. For completeness, the calculation of amount to be paid under NPF was capped to a
certain amount as opposed to being calculated as a percentage of the salary.
15Construction
Sector
16The main measures included in the 2020-2021 budget to boost the construction industry include the following:
Projects to be undertaken by the government
The construction of housing estate scheme will be extended as follows:
• Rs 12 Bn for the construction of 12,000 social housing units over the next 3 years for Mauritian families with monthly
income of up to Rs 60,000.
• Rs 7.5 Bn for The Rivière des Anguilles dam construction.
• Rs 6 Bn invested in the main bus terminals along the Port Louis – Curepipe corridor into multi-modal Urban Terminals.
• Rs 5.2 Bn for the construction of new roads and bridges.
• Rs 5 Bn for the completion of the Metro System from up to Curepipe.
• Rs 3.2 Bn over 3 years under PPP for Bus Terminal modernisation.
• Rs 2.2 Bn for a Breakwater, Fishing Port and the Cruise Terminal Building.
Rs 62 Bn worth of Projects awaiting approval at EDB will be fast tracked
Initiatives proposed to stimulate private investment in the construction sector
• Waiver of Building and Land Use Permit (BLUP) for construction of pharmaceutical manufacturing factories, food
processing plants and warehouses.
• Facilitate purchasing of Immovable Properties by foreigners through digital Power of Attorney.
• Housing Estate scheme extended June 2022 for Registration Duty Exemption on acquisition of up to Rs 7 M newly
built dwelling (incl. under VEFA, and Vente à terme but excludes IHS,PDS,RES,IRS).
• No LTT for registration of projects comprising of at least 5 residential units registered from 1st July 2020 to 31st
December 2020, with the MRA.
• No registration duty and LTT will be payable on the transfer of freehold bare land for the construction of housing
estate project provided the land is transferred by 31st December 2020, construction completed by Dec 2021. For
VEFA, LTT exemption will apply if sale made to Mauritian before 30.06.2022 for value up to Rs 7 M.
Government Projects
• Cash Basis VAT payment for Government contracts on construction works.
• Payment to Contractors within 28 days I/o 56 days.
• Retention monies refunded within 6 months I/o 1 year.
• Public projects with investments of less than Rs 300 M will be opened to Mauritian companies, where pre-
qualification is not required by Central Procurement Board.
17Agricultural
Sector -
Seeking self-
sufficiency
18National Agri-Food Development Programme
• Promote the Farm to Fork concept, ensuring food security and reduce our dependence on imports.
• Technical support will be provided to small planters to allow them to participate fully in the programme.
Landscope Mauritius Ltd
• A centralised digital Land Bank of State and Private Agricultural Land will be set-up as a platform to match
demand and supply for land that can be used for food production. Some 20,000 acres of abandoned land will
be put on the platform for immediate use.
• Any small planter, having up to 10 acres of agricultural land will be allowed to convert up to 10 % of his land for
residential or commercial purpose.
• Landscope Mauritius Ltd to acquire more private agricultural lands with the support of the State Investment
Corporation (SIC).
The Food and Agricultural Research & Extension Institute (FAREI)
• Development of necessary standards and norms for production, storage, transformation and commercialisation
of superfoods.
The Food and Agricultural Research & Extension Institute (FAREI)
The role of AMB will be broadened as follows:
(i) Implement a production plan based on local demand.
(ii) Manage the National Wholesale Market for fruits and veg before year end
(iii) Establish a price guarantee mechanism to enable producers to earn a sustainable flow of income.
(iv) Invest in regional storage facilities to improve on-shelf life for seasonal crops.
(v) Engage with local firms for agro-processing and ensure availability of quality seeds to develop new
crops
Sugarcane Industry
• For crop 2020, planters to receive a guaranteed price of Rs 25,000 per ton for the first 60 tons of sugar.
• The insurance premium payable to the SIFB by planters producing up to 60 tons of sugar will be waived for Crop
2020.
• Increased customs duty to 100% on imported sugar.
Other Measures in the agricultural sector
• Increased subsidy for the purchase of seeds of onions and potatoes from Rs 5,000 per ton to Rs 25,000 to boost
production.
• Waiver of the payment of the annual premium in respect of the Crop Loss Compensation Scheme operated by
the Small Farmers Welfare Fund.
• Fruit Protection Scheme: a grant of 50% of the cost of permanent netting structures will be provided to orchard
owners.
• The DBM to provide loans at the rate of 0.5 % p.a. for distressed companies affected directly by the Covid-19
pandemic.
19Other sectors
20Manufacturing & Export
• Government will set up a Buy Mauritian program to favour local entrepreneurship and industrial development.
• There will be quotas set to protect and promote the ‘Made in Mauritius’ brand.
• A minimum shelf space of 10 % for locally manufactured goods in supermarkets.
• Ministries and Government Bodies to have a minimum domestic content of 30 % in their purchases of goods as
far as practicable.
• Provision for a Margin of Preference of 20 % on public purchases to all local manufacturing companies and 30 %
for manufacturing SMEs.
• Investment tax credit of 15 % over 3 years extended to all manufacturing companies.
• Double deduction on the cost of acquisition of patents and franchises plus the costs incurred to comply with
international quality standards and norms.
• ISP Ltd will financially support enterprises producing hygienic goods such as sanitizers, PPEs, masks, handwash,
and medical devices.
Export Sector
• Port dues and terminal handling charges for exports waived from July to December 2020 and reduced by 50%
for the period January to June 2021.
• Freight Rebate Scheme extended to exports to Africa.
• Trade Promotion and Marketing Scheme to cover exports to Japan, Australia, Canada and the Middle East.
• Export Credit Insurance Scheme extended to all exports.
• A “Made in Mauritius” warehouse set-up in Tanzania and Mozambique supported by Government over 2 years.
• A reputable international firm to review our export model to transform the textile industry.
• Companies to benefit from a 50 % refund on the costs of certification, testing and accreditation of local
laboratories.
• Exemption from the payment of registration duty and land transfer tax on purchase of immovable property.
Tourism Sector
The following measures are proposed to boost the sector:
• Set a protocol ensuring all sanitary precautions from arrival to departure.
• Provide support to Air Mauritius, the national carrier.
• A new tourism branding strategy to be developed by the MTPA and EDB.
• Commercial partnership with the Liverpool Football Club to promote the Mauritius destination.
• Aparthotels Scheme: Enable existing hotels to convert and sell part of accommodation units as individual serviced
apartments.
• Invest Hotel Scheme: Owners to occupy their units for a total of 90 days instead of 45 days p.a.
• Private jets: Special arrangements made at the Airport to accommodate High Net Worth visitors.
• Major events organized by the MTPA in Mauritius inviting international press, travel agents and tour operators.
• 2-year licence fee holiday to Licensees of the Tourism Authority and Beach Authority.
• Waiver for Hotels on the rental payment of state lands for the upcoming financial year.
• Hotel Reconstruction and Renovation Schemer rebate is now 100% for two years up to 30 June 2022 instead of
50%.
• Companies under the Deferred Duty and Tax Scheme and the Mauritius Duty Free Paradise allowed to sell on the
local market up to December 2021 provided they pay the taxes.
21Financial Services
Proposed Key amendments to the Financial Services Act 2007 (“the Act”)
• Definition of “peer to peer” lending under the Act will be reviewed.
• The Financial Services Commission may now be able to collect information on a conglomerate group, including
unregulated entities, which would impact on the safety and soundness of the financial group.
• New notice periods will have provided for if a licensee wishes to surrender its license and there will be a timeframe
for the transfer of business if applicable.
• There will be provisions for the exemption of filing of financial statements if the Financial Services Commission
does not require so in its opinion. Moreover, there will be flexibility accorded for such financial statements in
exceptional circumstances.
• Auditors of licensees will now have to report irregularities to the Financial Services Commission.
Emergence of New Sectors
Through investment in new technologies, the government hopes to achieve its vision of a Mauritius driven by data
technology.
Côte d’Or Data Technology Park
1. ICT Operation Centre: Implement best Cloud Native practices for development of secure scalable
software
2. Business Operation Centre: Business intelligence solutions and strategic development oversight to
reduce redundancy in business operations
3. Sustainable Technology Centre: Ensure net zero carbon footprint of future infrastructure, adopt best
green practices, research and support forward looking sustainable practices
4. Centre for Additive Manufacturing and Design Innovation: Enable rapid transition from idea to mass
production through advanced manufacturing processes
5. Deep Artificial Intelligence Centre: A Carbon Neutral Green Certified Tier 4 Data Centre. Central pillar
and accelerator of digital transformation for start-ups, existing businesses and government services.
6. Centre for Advanced Sciences: Position Mauritius in the competitive international science and
engineering landscape
7. Technological Education Acceleration Centre: Allow working Mauritians to acquire market-driven skill
sets through fast-paced educational bridge program
8. Logistics and Facilities Centre: Monitor and ensure smooth operation of the Park
9. Food Technology Centre: Reduce dependencies on imported food and promote smart agriculture
10. Health and Wellness Centre: Provide services to promote physical and mental health. Research and
assist in development of pharmaceutical products and medical devices
11. Mixed Media Centre: A venue, for artists of all forms, providing a creative environment to support
Mauritian businesses and culture.
12. Reform and Policy Centre: Advise and implement structural reforms of accreditation agencies,
governing bodies and consumer services to ensure Mauritius meets high international standards.
22Pharmaceutical Industry- Development of a full-fledged pharmaceutical sector
• Investment in the production of pharmaceutical products, medical devices and personal protective equipment
via a public-private enterprise.
• A new Medical Products Regulatory Authority Bill introduced to ensure adherence to international norms and
standards,
• The Human Tissue Act to be fully proclaimed.
• Setting up the regulatory framework for telemedicine platforms.
• Waiver of Registration duty on acquisition of immovable property in the life sciences sector.
• VAT exemption on construction materials and specialised equipment for Medical R&D centres as well as a double
deduction on R&D expenditures.
Blue Economy
Invest in JVs engaged in fishing activities and its value chain.
An inland aquaculture scheme will be introduced with the following incentives:
(i) 8-year tax holiday
(ii) Duty and VAT exemption on equipment
Introduction of a single licence for chartered yacht calls with multiple berthing options, rights for helicopter flights and
gaming.
Africa
• Strengthening of Mauritius’ partnerships with the rest of Africa.
• Rs 10 Bn earmarked for investment in African projects such as SEZ projects under G2G framework.
Fostering Entrepreneurship and Ideas
• Support of Rs 10 Bn via DBM Ltd for struggling SMEs and Cooperative Societies
• Loans of up to Rs 10 M per enterprise at 0.5% p.a.
• One-off grant towards “Made in Moris” label certification increased to a maximum of Rs 50,000.
• The Margin of Preference for SMEs with the “Made in Moris” label is increased from 30% to 40% under Public
Procurement.
• Creation of a Technology and Innovation Fund to invest up to Rs 2 M as equity in projects recommended by
Mauritius Research and Innovation Council.
• SMEs’ access to factoring facilities through Maubank broadened and the factoring fee subsidised at 50% per
invoice via ISP Ltd.
• The procurement of specific goods and services by public bodies to become exclusive to SMEs. Payment will be
done within 14 days from date of invoices.
• Grant of 15% on cost of assets up to a maximum of Rs 150,000 for SMEs and cooperative societies, under DBM
Enterprise Modernisation Scheme.
• Cooperative societies to benefit from a grant of up to Rs 50,000 from the Cooperatives Development Fund for
purchase of livestock and acquisition of equipment for production of food items.
23Banking
Proposed Key amendments to the Banking Act 2004 (“The Act”)
(i) Two definitions namely “significant interest” and “related party” currently contained in the Act will be
reviewed.
(ii) The Act will also now make provision for digital banking.
(iii) The Act will allow the Bank of Mauritius the discretion to extend the time period for rotation of audit
firm for an additional period of 2 years.
(iv) The supervisory function of the Bank of Mauritius in respect of money lenders will now be that of the
Financial Services Commission.
(v) There will be more flexibility in respect of submission of financial statements to the Bank of Mauritius.
(vi) The Act will now allow the Bank of Mauritius to vary the capital adequacy ratio to a lower level when
required and in exceptional circumstances.
(vii) The conservator (as defined and as may be appointed under the Act) will now have the powers to
execute any instruments in the name of the financial institution and to initiate, defend and conduct in
its name any action or proceedings to which the financial institutions may be a party.
(viii) Protection of customers of financial institutions under the Act will be aligned to provisions relating to
the Ombudsperson under the Financial Services Act 2007.
(ix) The Bank of Mauritius will now be able to issue directives.
24WE CAN
HELP
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completeness, timeliness, accuracy, and without warranty of any kind, express or implied, including but not limited to the warranties
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