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New Revenue Agency To Improve Mauritian Tax System

by Lorys Charalambous, Tax-News.com, Cyprus

07 July 2006

The Mauritius Revenue Authority (MRA), launched earlier this week, will help the jurisdiction "turn a new page" in its efforts to modernise its tax system, according to Deputy Prime Minister Rama Sithanen.

In his address at the launching of the MRA, Mr Sithanen explained that the new agency has several goals, including to: improve tax compliance and increase revenue flows; improve taxpayer service and reduce the compliance burden; improve staff skills and productivity; and reduce overall costs of tax collection.

The setting up of the MRA, which was first proposed in the 1990s, is a major element of an overhaul of the Mauritian tax system.

“Hitherto our tax system was complex, non transparent and offered opportunities for evasion and avoidance, leading to inequity and inefficiency," stated Mr Sithanen.

"That is why we have made fundamental changes to simplify our tax system and restore fairness,” he added.

The Deputy Prime Minister went on to explain that the tax reforms are designed not only to improve revenue collection, but also to bring about greater fairness in the tax system, increase transparency and facilitate taxpayer compliance.

"With these sweeping changes, the stage is set for the efficient operation of the MRA," Mr Sithanen declared in his concluding remarks.

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