JURISTAX Let’s Grow Together

BUDGET
BRIEF 2022/23
W I TH T H E PEO PL E, F O R THE PEO PL E
 01 CEO’s

CONTENTS
Focus

02 Economic
Snapshot

03 Mauritius International
Financial Centre

04 Work & Live

in Mauritius

05 Fiscal
Measures

06 Sector
Review

07 Social Measures
& Other Aspects

08 About
JurisTax
 Last year’s budget was triggered by a pandemic the world was not The financial sector which showed resilience even when the
3. used to dealing with causing a protracted lockdown spanning 18 economy was at a standstill. In an effort to stimulate the sector,
months which ate up to 32% of the GDP. The aftermaths of the the budget makes an allowance for training its workforce. and the
pandemic coupled with the war in Ukraine and extreme climate set-up of a Financial Crime Commission to ensure an effective
conditions are having a significant impact on food production in coordination in the fight against financial crimes.
the world. The economies of less developed countries are being
particularly stretched. Our jurisdiction used to rely on its fiscal advantage, but is now
bound by the OECD Multilateral Convention to implement BEPS
Mauritius is showing signs of recovery from the 15% contraction measures. The industry therefore has to continue the process
in GDP in 2020/2021 followed by a modest 4.2% recovery in of reinventing itself and think of other sources of competitive
2021/2022. Growth forecast for the budget period is at 8.5%. advantage.
Public debt, the Minister said was reduced from 96.1% to 87.4%
of GDP. The budget forecasts that Foreign Direct investments will Among measures announced, the Bank of Mauritius together
increase from Rs 15.4 billion to Rs. 20 billion during the current with the Bank of China will launch a regional Renminbi Clearing
financial year. Centre this year. Moreover, the Financial Services Commission
will revamp its framework to enable Re-Insurance companies to
The Bank of Mauritius expects inflation to be at 8.6% in 2022. set up operations in Mauritius. Furthermore, on the occasion of
It seems that the Minister’s objective was to target support to the 55th anniversary of the Bank of Mauritius, a 5-Year Emerald
CEO’S FOCUS

the neediest, those of low, but also the middle-income group. Jubilee Bond will be issued at an annual interest rate of 4%.
Measures announced include reduction of tax rates for middle
income earners, construction of social houses, increased benefits The way forward is that the public sector and the private sector
for households on the social Register of Mauritius and a 20% come together and agree on a long-term vision for the economic
increase in social aid. One of the headline measures remains an landscape and implement the roadmap to make it happen.
increase of Rs 1,000 of the universal pension.
We must give ourselves the means to achieve these ambitions.
Mauritius imports 75% of its food consumption. On the outset the
Minister announced a Rs 3 billion allocation to boost agricultural
production and reduce dependency on food imports. Kessen Ramalingum
Hopes are now on tourism with the propensity of visitors to
spend more and extending their stay in Mauritius. Minister

‘‘
Padayachy reiterated the target of 1 million tourists for the year,
but more importantly tourism earnings should at least equal
pre-covid levels in foreign currency terms.

TALENT WINS GAMES,

BUT TEAMWORK WINS
CHAMPIONSHIPS

Let’s Grow Together

ECONOMIC SNAPSHOT

Let’s Grow Together

5.
ECONOMIC SNAPSHOT

MAURITIAN ECONOMY 2021 FORECASTS 2022 MAURITIAN ECONOMY 2021-2022 (%) 2022-2023 * (%)

GDP (PER IMF FORECASTS) MUR 465bn MUR 520bn UNEMPLOYMENT RATE % 9.1 7.8

EXPORTS OF GOOD AND SERVICES MUR 141bn MUR 169bn BUDGET REVENUE AS % OF GDP 27.4 26.0

FOREIGN DIRECT INVESTMENTS MUR 15.4bn MUR 20bn BUDGET EXPENDITURE AS % OF GDP 32.4 30.0

GOVERNMENT DEBT AS % OF GDP 77.3% 68.1% INVESTMENT RATE 19.2 21.2

BUDGET DEFICIT AS % OF GDP 5% 4% PUBLIC SECTOR DEBT 87.4 78.0

HEADLINE INFLATION RATE 2.2 8.6

* FORECAST

Let’s Grow Together

 GOVERNMENT EXPENDITURE
6.

MUR 15.20bn
PUBLIC ORDER
AND SAFETY

MUR 12.22bn
ECONOMIC
MUR 1.00bn AFFAIRS
OTHERS
ECONOMIC SNAPSHOT

MUR 1.41bn
ENVIRONMENTAL
MUR MUR MUR PROTECTION

45.17bn 59.40bn 68.32bn

MUR 19.04bn
EDUCATION
MUR 2.83bn
GENERAL PUBLIC SOCIAL PROTECTION OTHERS HOUSING AND
COMMUNITY
SERVICES AMENITIES

MUR 1.31bn
RECREATION,
CULTURE AND MUR 15.33bn
RELIGION HEALTH

Let’s Grow Together

THE MAURITIUS INTERNATIONAL
FINANCIAL CENTRE (“MIFC”)

Let’s Grow Together

 8. EMPOWERING THE MIFC THROUGH THE COLLABORATIONS AND INCENTIVES
FINANCIAL SERVICES COMMISSION (“FSC”) THROUGH THE BOM
• Its framework shall be revamped to enable Re-Insurance • The BOM together with the Bank of China will launch a regional
companies to set up operations in Mauritius. Renminbi Clearing Centre this year.

• Removal of “Global Headquarters Administration”, “Global • Collaboration with the National Payments Corporation of
Shared services” and “Global treasury activities” from the scope India for the issuance of ‘RuPay’ cards and Indian QR Code in
of “financial services” under the Financial Services Act and to Mauritius.
create a separate section for regulation of global activities in
line with FATF requirements. • Introduction of a National Payment Card for customers.

• The current requirement for high-net worth individuals and • On the occasion of its 55th anniversary, a 5-Year Emerald
families shall be reviewed to a minimum portfolio of USD 5m Jubilee Bond will be issued at an annual interest rate of 4%.
THE MAURITIUS IFC

per management family office.

THE BUSINESS CLIMATE

EASE OF DOING BUSINESS RESTORATION OF DEADLINES
• Introduction of a Business Regulatory Reform Bill as an apex
• Removal of extension time, initially introduced due to Covid-19
legislation on business facilitation.
pandemic such that going forward:
• Setting up of a Financial Crime Commission to ensure an
» Annual meeting of shareholders to be held not later than 6
effective coordination in the fight against financial crimes.
months after the balance sheet date;
• The government will adapt its legislative framework to
» Preparation of financial statements within 6 months after
converge the domestic and the global business regime.
balance sheet date; and

‘‘
» Filing of financial statements for domestic companies with
the Registrar of Companies (“ROC”) within 28 days from the
date such financial statements have been signed, or such
other period as may be determined by the ROC.
MAURITIUS FINALLY OUT
OF THE FATF, EU AND UK LIST

Let’s Grow Together

 DIGITALISATION OF SMALL AND MEDIUM
9.

THE MIFC ENTERPRISES (SMEs)

• Allocation of MUR 15m to speed up the connection for the Government Online • Loans and equity funding have been granted to more than 12,000 SMEs by the Development
Centre. Bank of Mauritius (“DBM”) and Industrial Finance Corporation of Mauritius (“IFCM”).
THE MAURITIUS IFC

• Digitalisation of the following services: • Increase of the present turnover threshold from MUR 50m to MUR 100m to be classified as
SMEs.
» Application for Certificate of Character.
• Angel investors who provide seed equity financing to small businesses will be eligible for a tax
» Payment of Road traffic fines. allowance.

» Application for social benefits. • The DBM will inject MUR 5bn into SMEs, Mid-Market Enterprises and entrepreneurs.

• Possibility to open accounts and accept deposits for the issuance of digital currency.

THE DIGITAL INDUSTRIES ACADEMY (“DIA”)

• As from July 2022, training will be provided to 1,000 individuals in the field of Artificial
Intelligence.

• Cloud Computing, Cyber-Security, Data Communications and 5G will be provided.

• Setting up of a DIA Incubator for high-end ICT product development.

• Partnership with banks, telco providers and international players to provide

counselling and financial incentives to 50 incubatees.

Let’s Grow Together

WORK & LIVE IN MAURITIUS

Let’s Grow Together

 11.
WORK & LIVE IN MAURITIUS

RESIDENCE OCCUPATION Businesses will have required support for recruitment of young talents under the
young professional occupation permit.

PERMIT PERMIT
• Holders of residence permits will now
be able to apply for the acquisition of
a residential property for a minimum
investment of USD 350,000 subject to a
10% contribution to the Solidarity Fund.

RETIRED PREMIUM
• Owners of residential property acquired
by more than one non-citizen under
‘fractional ownership’ shall be entitled
to register for the status of residency
provided that the investment by each
NON-CITIZENS VISA
non-citizen exceeds USD 375,000.
Students in completion of their studies and
A first edition of the Mauritius International Silver Economy
• Holders of Global Headquarters entrepreneurs shall benefit from the premium visa.
Festival will be organized by the EDB in favor of foreign retirees
Administration Licence will be provided
in Mauritius to invite applications for permanent residency
work and residence permits for 5
from older members of Gen X (born 1965 to 1980) and Boomers
executives and the latter’s dependents.
(born 1955 to 1964).

Let’s Grow Together

FISCAL MEASURES

Let’s Grow Together

 13. PERSONAL TAX VALUE ADDED TAX
Exemptions • List of VAT registered persons will be made publicly available on MRA website.

Maximum tax exemption in respect of a child pursuing • Shifting of eligibility criteria for VAT refund on residential building from the cost
tertiary education Increased From MUR 225,000 to MUR 500,000 price not exceeding MUR 3m to the covered area constructed not exceeding 1,800
(covers both undergraduate and postgraduate courses) square feet.

Maximum deduction for medical insurance premiums: • VAT Refund on residential buildings shall be made within 30 days of receipt of
• For an individual and his first dependent Increased • From MUR 20,000 to MUR 25,000 all supporting documents as compared to the previous timeframe of 30 days of
• For every other dependent Increased • From MUR 15,000 to MUR 20,000 receipt of the application.

• Implementation of an e-invoicing system by the MRA for invoices issued in the

course of a business activity.
FISCAL MEASURES

Exemption in respect of donations made to an approved Increased From MUR 30,000 to MUR 50,000

‘‘
religious body or charitable NGO

Exemption in respect of an individual pension scheme Increased From MUR 30,000 to MUR 50,000
for the provision of a pension for himself

Allowances

Exemption of travelling allowances deductible from Increased From MUR 11,500 to MUR 20,000 ENHANCING THE
income tax

Direct monthly income allowance to those earning a New MUR 1,000

STANDARD OF LIVING
gross income of up to MUR 50,000
OF MIDDLE-INCOME
Change in Income tax Rate (as from Jul 2022)
EARNERS THROUGH A
Individual Earning MUR 25,000 to MUR 53,846 monthly 10%
PROGRESSIVE INCOME
(i.e MUR 700,000 annually)
TAX REGIME
Individual Earning MUR 53,846 and up to MUR 75,000 monthly Reduced from 15% to 12.5%
(i.e MUR 975,000 annually)

Individual Earning above MUR 75,000 monthly 15% & Solidarity Levy, if
(i.e above MUR 975,000 annually) applicable

Let’s Grow Together

 14. CORPORATE TAX OTHER TAXES
• Tax Arrears Settlement Scheme (“TASS”) • Property Taxes:

Full waiver on penalties and interest on outstanding tax and tax arrears under the Income » Eligible person will continue to benefit from a refund of 5% of the cost of the property up
Tax Act, the VAT Act and the Gambling Regulatory Authority Act. The tax payer should be to MUR 500,000 under the Home Ownership Scheme up to 30 June 2023.
registered under this scheme by 31 December 2022.
» Abolishment of municipal tax on family home in urban areas as from 01 July 2022.

• Income Tax Holiday - Freeport Companies

A grant of 8-year income tax holiday to a newly set up freeport operator or developer making • Registration duty:
an investment of at least MUR 50m.
» registration duty and tax applicable for share buyback.
FISCAL MEASURES

• Global Minimum Tax » Each spouse married under the regime “corps et bien” will benefit from the exemption of
registration duty for first time buyers.
Introduction of a domestic minimum top-up tax, multinational enterprise groups having a
global annual revenue of EUR 750m to ensure a global minimum rate of 15%.

• Excise Duty:
• Waiver of Income Tax penalties
» All hybrid and electric vehicles will be duty free from 01 July 2022.
Waiver of income tax penalty fees for SMEs on remaining outstanding balances as at 25
March 2022 for late submission of income tax returns for years 2020 and 2021. » Introduction of Negative Excise duty scheme of 10% for purchase of electric vehicles by
individuals up to a maximum of MUR 200,000.
• Tax Deducted at Source » Extension of excise duty rebate scheme on motor vehicles up to June 2023.
Rate of tax deducted at source on : » Increase in the excise duty by 10% for alcohol and cigarettes.
» Services provided by professionals increased from 3% to 5%.
» Rent paid to a resident increase from 5% to 7.5%. » Excise duty of 6% per gramme of sugar on locally manufactured and imported non-staple
sweetened products will be effective on 01 July 2025.

• Premium Visa Scheme:

» Foreign employer of the holder of a Premium Visa will not, in respect of that employee, be
subject to the payment of corporate tax under the Income Tax Act and social contribution
under the Social Contibution and Social Benefits Act.

Let’s Grow Together

SECTOR REVIEW

Let’s Grow Together

 16.

CONSTRUCTION MANUFACTURING

Public contracts below MUR 20m will be reserved for small contractors and a loan facility • Fastest recovery sector with a growth rate of nearly 11% in 2021
of up to MUR 25m at a concessional rate of 3.5% per annum will be offered by DBM Ltd to and the Export of goods increased by 17%.
improve competitiveness of local construction companies.
• To promote locally manufactured products and encourage a buy
local culture:
SECTOR REVIEW

» Virtual Exhibition Platform for locally manufactured goods at

the Economic Development Board (“EDB”) will be operational
as from October 2022.

» “Semaine de l’Industrie Locale” will be organised to promote

EDUCATION the “savoir-faire” of Mauritian enterprises.

» EDB will identify products to obtain geographical indication

and its label.
MUR 18.3bn allocated for the education sector across all levels, be it at primary, secondary
or tertiary and children with Special Education Needs (“SEN”) and learning difficulties as • Freight Rebate Scheme (FRS) and the Trade Promotion and
well. Marketing Scheme (TPMS) will be extended up to June 2023 to
maintain the increase in exports.
Hot meal and transport facilities in SEN schools will be provided to all students irrespective
of age. • SMEs will benefit from the FRS on the South African market.

• Maintain the 50% reduction in port charges on exports.

• SME International FRS will be opened to freeport operators.

Let’s Grow Together

 17.

BLUE ECONOMY AGRO-INDUSTRY

• MUR 6m grant shall be provided instead of MUR 4m for acquisition of semi-industrial • Incentives have been taken to boost local production with the aim
fishing vessels by registered cooperatives. to reduce imports of food.

• 4 sites will be allocated for off-lagoon aquaculture and legislation will be amended • Measures are being employed to encourage planters to increase
accordingly. local productivity of fruits & vegetables.
SECTOR REVIEW

• A new concession framework will be introduced in the Maritime Zones Act to allow for • Increase of subsidies on fertilisers, animal feed and seeds.
in-lagoon pearl oyster and algae culture.
• Introduction of a “Crop Replantation Fund” at the Development
Bank of Mauritius at a preferential rate of 2.5% per year is available
to motivate planters to consider growing fruits & vegetables on
deserted land.

• Apiculture: Reduction of dependency on the importation of honey

which adds up to 90% of the total rate consumed by Mauritians is
TRANSPORT being considered.

• Planters involved in sustainable agricultural exercises enlisted

with the EDB shall be provided with an 8-year income tax holiday.
• To promote the electrification of the public transport system, the Industrial Finance
Corporation of Mauritius (IFCM) will provide leasing facilities of 3% per annum over 10 • Sugar Sector - The grant under the Cane Replantation Scheme
years to transport operators to acquire electric vehicles and charging infrastructure. has been increased.

• IFCM will provide concessionary leasing at 3.5% per annum to companies renewing • Introduction of the Cane Replantation Revolving Fund by the DBM
their company fleet to electric only. in order to ensure an equal distribution of revenues.

Let’s Grow Together

 18.

RENEWABLE ENERGY TOURISM

• The existing rental fee for production meters of Renewable Energy Schemes is being
waived. • The marketing budget of the Mauritius Tourism Promotion
Authority will increase by more than 10% from MUR 360m to MUR
• Individuals and companies will be allowed to generate renewable energy up to a 400m to consolidate existing markets, tap into new opportunities
maximum of 150% of their annual requirement. and niche markets.

• A renewable energy transition framework is being implemented through the :- • To accommodate ultrahigh net worth passengers, personalized
SECTOR REVIEW

facilities will be offered by Airport Holdings Ltd such as handling of

» Generation of up to 150% of existing usage by industrial users. private jets and transfers from the airport to hotels by helicopter.

» The provision of an agreed feed-in tariff of MUR 4.20 for industrial users by the CEB. • Events with a minimum of 50 participants will be eligible to benefit
from VAT refund under the Meetings, Incentives, Conferences and
» Allowing the setting up of both on-site and off-site PV installations by industries. Exhibitions scheme.

» The introduction of a Carbon Neutral Loan Scheme by the IFCM over 7 years at a • To support hotels in their refurbishment, the 50% lease rent
preferential rate of 3%. waiver is being extended up to June 2023.

SOCIAL AID

• All basic pensions such as Basic Retirement Pension, the Basic Widow’s Pension, the
Basic Invalid Pension and Basic Orphan pension will increase by MUR 1,000.

• To accompany growing families, a baby bonus of MUR 1,000 will be provided to parents
of every new-born as from 01 July 2022.

Let’s Grow Together

SOCIAL MEASURES

Let’s Grow Together

 20.
SOCIAL MEASURES

ART AND CULTURE HEALTH CARE LAW AND ORDER

• Introduction of new scheme to encourage local artists and • The Healthcare budget has been increased from MUR 13.1bn • MUR 10.9bn to the Police Force to offer a quality and efficient
new projects. to MUR 14.7bn amongst which. service to the population.

• Allocation of MUR 20m for the construction of a National Arts » MUR 2.5bn for modernizing the health infrastructure. • MUR 15m is earmarked for the implementation of e-passports
Centre and modernisation of Theatres. and e-gates to enhance border security.
» MUR 325m is earmarked for the acquisition of high-tech
• Mauritius Arts Expo will be organised for the first time this medical equipment for completion or upgrade of new
year. cancer Centre.

• Setting up of an Expression of Interest with private operators

for renovation, maintenance and operation of historical
buildings and landmarks.

• Promotion of Mauritian literature to public libraries.

Let’s Grow Together

ABOUT JURISTAX

Let’s Grow Together

 ABOUT JURISTAX
22.

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Let’s Grow Together

 23.
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