The Mauritius National Budget 2022 – 2023 was presented by Dr the Honourable Renganaden Padayachy, Minister of Finance, Economic Planning and Development on Tuesday 07 June 2022.

As from July 2022, the proposed fiscal measures taken in the budget include:

• Increase in the net income taxable at 10% from an annual amount of Rs 650,000 to Rs 700,000
• Introduction of a new tax rate of 12.5% for individuals with a net annual income between Rs 700,001 to Rs 975,000
• Net annual income above Rs 975,000 will be taxed at the rate of 15% and the Solidarity Levy, if applicable
• An individual liable to the Solidarity Levy and deriving pension or director’s fees will be given the option to request the deduction of PAYE for the Solidarity Levy at the rate of 10%
• The exemption of travelling allowances deductible from income tax will be increased from Rs 11,500 to Rs 20,000
• The allowable deduction/exemption on the following items have been increased:
  • In respect of a dependent child pursuing tertiary studies from Rs 225,000 to Rs 500,000 per year
  • The allowable deduction for premium paid for medical insurance increases by Rs 5,000
  • Contribution to personal pension schemes increases by Rs 20,000
  • Donations to charitable institutions increase by Rs 20,000

Also note that employers who contribute to a private pension scheme are not required to contribute toward the portable retirement gratuity fund (PRGF). However, it has now been cleared that the rate of contribution towards the private pension scheme must not be less than the prescribed PRGF rate. Further amendments will be brought to address the issue of non-payment of contributions for past services for employers who do not pay the PRGF based on their contributions to a private pension scheme.