Mauritius News Service from Mauritius (Ile maurice) - http://www.mauritiustoday.com/news
The Budget at a glance
http://www.mauritiustoday.com/news/articles/13038/1/The-Budget-at-a-glance/Page1.html
Kemp Chatteris Deloitte
Kemp Chatteris Deloitte is one of the largest multi-disciplinary professional services firms in Mauritius. We offer a full range of services and advice to our clients. We provide our clients unrivalled expertise in four major areas: assurance & advisory, tax, consulting and reorganisation & insolvency. Our mission is to help our clients and our people excel. This is driven by our shared beliefs in outstanding value to clients, commitment to each other, integrity and strength from our cultural diversity. The Mauritian practice is part of the Deloitte network, a global leader in the provision of professional services with more than 119,000 people in over 140 countries. Our expertise in a broad range of services enables our people to deliver complete business solutions to resolve today's challenges and anticipate tomorrow's. Our unique approach allows us to build great partnerships and optimise on collaborative effort. 
By Kemp Chatteris Deloitte
Published on June 11, 2006
 

The Honourable Ramakrishna Sithanen presented the first budget of the new government as one to face the challenges of globalisation.

With a view to improving the ease of doing business, opening up the economy and increasing the flexibility of the labour market, the budget includes bold and imaginative fiscal reforms to simplify the tax system.

Budget 2006/2007 Review

Personal Tax

·                      All personal reliefs consolidated into a single exemption.

·                      Gradual tax rate reduction to a flat rate of 15% in 3 years.

·                       New National Residential Property Tax introduced.

·                       Increase in car benefit from Rs12,000 to Rs48,000 / Rs60,000.

·                       PAYE on a cumulative basis.

·                       Interest, royalties and rental income taxed at source.

·                      CPS returns on a quarterly basis.

Corporate Tax

·                      A gradual reduction to a flat rate of 15% for all sectors over next 3 years.

·                      Annual allowances on a reducing balance basis.

·                      Annual allowance of 5% on non industrial buildings.

·                       Investment allowance of 25% removed.

·                      Current tax losses carried forward for maximum of 5 years.

·                      AMT rate increased from 5% to 7.5%.

Value Added Tax

·                       No change in the VAT rate or tax base.

·                       Registration threshold reduced to Rs2million.

·                      Threshold for monthly returns reduced from Rs12million to Rs10million.

Registration Duty

·                       Reduction of duty on transfer of immovable property from 10% to 5%.

Customs Duty

·                      Top rate reduced to 30%.

·                       Duty removed on 275 items used in industry and small businesses.

·                       Existing 4 categories of vehicles reduced to 2:

! 1600 c.c. or less – 55%

! Over 1600 c.c. – 100%

Excise Duty

·                      Taxation of spirits proportionate to absolute alcohol content.

·                      Categorisation of alcoholic products rationalised.

Solidarity Levy

·                      Temporary levy of 0.85% of turnover of profitable hotels and destination management companies for 4 years.

 

 

Source: Kemp Chatteris Deloitte

Click here to read full report