The Economic Development Board (EDB) of Mauritius has released its Newsletter on the National Budget for 2023-2024. The budget was delivered by Dr The Hon. Renganaden Padayachy, who emphasized the government's strategies and policies to maintain economic recovery and drive forward the transformation of Mauritius into a modern, sustainable, and resilient country.
Despite global challenges such as the COVID-19 pandemic, geopolitical tensions, global supply chain crisis, and inflationary pressures, the Mauritian economy has made a stronger-than-expected recovery in 2022. The economic fundamentals were restored to pre-covid levels, with economic growth of 8.7%, registered inflows of Foreign Direct Investment (FDI) to the tune of MUR 27 billion, generated tourism receipts of MUR 64.8 billion, and exported goods and services of a value of over MUR 320 billion.
The budget for 2023/2024 aims to build on these foundations to achieve higher and more ambitious economic objectives, particularly securing GDP growth at 8% for the incoming fiscal year. The government revenue for the fiscal year 2023-2024 is expected to be MUR 179 billion and expenditure is forecasted at MUR 200 billion, resulting in a deficit of 2.9% of GDP. Public Debt is expected to fall to 79% of GDP in 2023 and is planned to be further brought down to 71.5% by June 2024.
The budget also focuses on helping families, lower-income groups, and businesses, without losing focus on the country’s resilience and longer-term needs in an ever-changing economic and geopolitical landscape. The tax reforms are the centrepiece of this year’s budget, with the restructuring of the Income Tax regime being a key fiscal reform aimed at restoring the economy’s competitiveness and bringing about fairness and equity for earners.
In terms of foreign investment, the budget aims to improve the business environment, leading reforms into actionable frameworks and strategy recommendations, facilitating and attracting investment. The review of the occupation permit for professionals will bridge talent gaps, addressing the jobs and skillset needs of companies. The budget charts a new way forward for the skilling and reskilling of employees by enhancing the learning and development ecosystem. The “silence is consent” principle is introduced to ensure the swift processing of permits and licenses.
The budget also introduces long-term measures and targets as well as incentives for Mauritius to prioritize environmental, social, and corporate governance (ESG). This will bring sustainability to the fore of our future development and economic strategy. Considerable importance is also being given to climate change policies.
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· A non-citizen, holder of a resident permit or occupation permit as the main applicant, will be allowed to acquire only one residential property outside of schemes (Smart City and PDS) for a price exceeding USD 500,000 and subject to payment of an additional registration duty of 10% provided that the property does not exceed 1.25 arpents and is not located on State land.
A residence permit to a retired non-citizen and his family will be granted on the acquisition of a property in a PDS project relating to senior living where the acquisition price exceeds USD 200,000.
A non-citizen and his family will be granted a residence permit on the acquisition of residential property at a minimum price of USD 375,000 under the new Sustainable City Scheme.
The time limit for the acquisition of one plot of serviced land by resident non-citizens in a smart city or a PDS project is extended up to 30 June 2026.
A non-refundable processing fee for acquisition under IRS, RES, PDS, IHS and Smart City and Ground +2 will be MUR25 000 same for residence permits.
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Retired non-citizens applying for Residence Permit will not be required to open a local bank account in the initial stage.
Foreign retirees will be allowed to take up employment in specific sectors.
The Immigration Act will be amended to grant a residence permit to a retired non-citizen and his family on the acquisition of a property in a PDS project relating to senior living provided that : (i) the acquisition price exceeds USD 200,000 (ii) the non-citizen is aged above 50 years old
The monthly basic salary threshold for Occupation Permit for Professionals will be reduced to Rs 30,000, irrespective of sector.
The initial investment requirement of USD 50,000 for investors and USD 35,000 for self-employed will be exempted at the time of issuance of permits. They will be required to show evidence of transfer of funds within 4 weeks of issuance of permits and post monitoring will be carried out.
INCOME TAX
The annual chargeable income of an individual will be taxed as follows:
0% of the first Rs 390,000.
2 % on the next Rs 40,000, that is for the surplus income between Rs 390,001 and Rs 430,000.
4 % on the next Rs 40,000, that is for the surplus between Rs 430,001 and Rs 470,000.
6 % for the next Rs 60,000, that is for the surplus between Rs 470,001 and Rs 530,000.
8 % for the next Rs 60,000, that is for the surplus between Rs 530,001 and Rs 590,000.
10 % for the next Rs 300,000, that is for the surplus between Rs 590,001 and Rs 890,000.
12 % for the next Rs 300,000, that is for the surplus between Rs 890,001 and Rs 1,190,000.
14 % t for the next Rs 300,000, that is for the surplus between Rs 1,190,001 and Rs 1,490,000.
16 % for the next Rs 400,000, that is for the surplus between Rs 1,490,001 and Rs 1,890,000.
18 % for the next Rs 500,000, that is for the surplus between Rs 1,890,001 and Rs 2,390,000. and
20 % on the surplus income above Rs 2,390,000.
As of the 1st of July 2023, an individual with no dependents with a chargeable income up to Rs 30,000 monthly, that is Rs 390,000 annually will not pay any income tax.
Please note that at this stage, these are announcements only. Each announcement will have to be validated and voted on before being implemented.
Have a look at the other announcements: EDB NEWSLETTER
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