Mauritius - Measures announced in Budget Speech 2023 - 2024
On
2 June 2023, the Minister of Finance, Economic Planning and Development
presented the Mauritius National Budget 2023/2024. The most significant
changes are the abolition of the solidarity levy and the change to a
progressive tax system, a major reform to the long-standing flat rate system.
These
proposed changes will be effective as from income year starting on 1st July
2023.
Progressive income tax
The
annual chargeable income of an individual will be taxed as follows:From | To | Chargeable Income | Rate of income tax |
- | 390,000 | First Rs 390,000 | 0% |
390,001 | 430,000 | Next Rs 40,000 | 2% |
430,001 | 470,000 | Next Rs 40,000 | 4% |
470,001 | 530,000 | Next Rs 60,000 | 6% |
530,001 | 590,000 | Next Rs 60,000 | 8% |
590,001 | 890,000 | Next Rs 300,000 | 10% |
890,001 | 1,190,000 | Next Rs 300,000 | 12% |
1,190,001 | 1,490,000 | Next Rs 300,000 | 14% |
1,490,001 | 1,890,000 | Next Rs 400,000 | 16% |
1,890,001 | 2,390,000 | Next Rs 500,000 | 18% |
2,390,001 | Exceeding | On the remainder | 20% |
Solidarity
Levy imposed on individuals earning a leviable income of more than Rs3m has
been abolished.
Income Exemption Thresholds
The
exemption of Rs 325,000 granted to a taxpayer in respect of self has been
replaced by a tax rate of 0 percent applicable on the first Rs 390,000 of
chargeable income. An individual with no dependent having a net income of up to
Rs 30,000 monthly, as compared to Rs 25,000 under the present system, will not
pay any income tax.
Deduction for dependents
Income
exemption thresholds for categories B, C, D and E have been replaced by
deduction for dependents. These amounts have remained unchanged:
Dependent | Amount of deduction (Rs) |
1 dependent | 110,000 |
2 dependents | 190,000 |
3 dependents | 275,000 |
4 or more dependents | 355,000 |
All
other personal reliefs and deductions have remained unchanged.
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