Mauritius Aims High With Low Tax Agenda

by Lorys Charalambous, Tax-News.com, Cyprus

01 September 2006

Two new pieces of legislation will make Mauritius one of the most competitive jurisdictions in the world in terms of tax and regulation, according to Deputy Prime Minister and Minister of Finance and Economic Development, Rama Sithanen.

Speaking at a workshop on the Finance Act 2006 and the Business Facilitation (Miscellaneous Provisions) Act 2006, Sithanen said the government wants to make Mauritius a globally competitive nation capable of reaching greater heights without trade preferences.

The new legislation, he added, was one of the most comprehensive sets of reforms the country has witnessed in many years.

“Our new tax policy is a prominent example of how both macroeconomic and microeconomic concerns of businesses are addressed in the reform programme. Mauritius is becoming one of the lowest tax jurisdictions in the world, with a 15% flat rate which will give our enterprises an important competitive edge,” stated the Deputy Prime Minister.

Sithanen explained that the Business Facilitation Act complements the Finance Act to ensure that reforms at the macro level, including fiscal consolidation, and at the micro level reinforce each other so as to give maximum impact on investment, trade and job creation. They also provide for implementation of measures announced in the Budget 2006 and the strengthening and streamlining of certain other provisions relating to revenue, public finance, banking and financial services.

The Business Facilitation Act also aims to further open up the economy to business by sweeping away irrelevant laws and reducing bureacracy.

“Reform is the best way to save the country from economic decline and a strong macroeconomic, political, legal and social environment is important to carry through our reforms successfully,” Sithanen observed.

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