Mauritius ‘Reinventing Itself,’ With Refocused Tax Breaks
Prospects for Mauritius’s economy remain “robust,” with the Government undertaking a number of initiatives to improve the attractiveness of the domestic tax regime for businesses, the International Monetary Fund said.
Amadou Sy, who led an IMF mission to the territory, said that the economy remains “robust” but that “Mauritius is facing a challenging environment and vulnerabilities are rising.”
He said that the territory is looking to reinvent its economic model, as it has done in the past. He noted: “The authorities seek to graduate Mauritius to a high-income economy within the next ten years on the basis of an ambitious public investment program and improvements to the business climate.”
In June, Prime Minister and Minister of Finance Pravind Kumar Jugnauth announced a series of tax incentives including a three percent concessionary tax rate for export-focused firms from next year, in a move intended to improve the jurisdiction’s standing as a business hub. In addition, Jugnauth announced an eight-year tax holiday for companies engaged in the manufacture of pharmaceutical products, medical devices, and high-tech products. This applies to companies incorporated in Mauritius after June 8, 2017.
Sy concluded: “The Global Business Sector is under pressure from international anti-tax avoidance initiatives. The authorities are undertaking efforts to address the concerns raised by the OECD and the EU in these matters. Prioritizing the adoption of the Blueprint for the Financial Services Sector can help the GBC sector transition from a system based largely on tax incentives to one that provides higher value added services.”