Africa-Press – Mauritius. The Minister of Finance, Economic Planning and Development, Dr Renganaden Padayachy, reiterated that the measures announced in the budget speech 2023-2024, this evening, will boost the Gross Domestic Product (GDP) robustly by 8 % for the year 2023-2024, and place the public sector debt on a downward path from 79 % in June 2023 to 71.5 % by end of June 2024.
The announced measures include coming up with a holistic tax reform as from this financial year where the personal income tax will be completely progressive and the solidarity levy is being removed.
All income will be taxed incrementally with the chargeable income divided into different revenue brackets, and each bracket will have a specific tax rate which will start at 0 % and be capped at a maximum of 20 %. The maximum marginal tax rate will decrease from 40 % to 20 % whereas the maximum effective tax rate will go down from 25 % to less than 20 %.
In addition, the income exemption threshold where no tax is paid is being increased and as of 01 July 2023, an individual with no dependent with a chargeable income up to Rs 30,000 monthly, will not pay any income tax, and an individual with two dependents with a chargeable income of Rs 50,000 monthly, will not pay any tax.
The 10 % increase in the petrol allowance up to a maximum of Rs 2,000 announced in the previous budget speech has also been reviewed to ensure that as from 01 July 2023, an employee will obtain at least Rs 1,000 more as compared to December 2021.
The price of Mogas has also been reduced from Rs 74.10 to Rs 69 per litre. The CSG Income Allowance of Rs 1,000 to all those earning up to Rs 50,000 monthly has been maintained for the next financial year and will be increased to Rs 2,000 for those earning up to Rs 25,000 monthly.
In addition, to provide relief to households affected by rising interest rates, Rs 1,000 monthly will be provided to individuals who have contracted loans of up to Rs 5 million for the purchase of their homes.
Furthermore, in a bid to protect citizens against rising global prices, as from 01 July 2023, the ‘Revenu Minimum Garanti’ of Rs 15,000 is being introduced to ensure that no individual in full-time employment will have a revenue of less than Rs 15,000.
All those who have a revenue including the CSG Income Allowance of less than Rs 15,000, Government will top-up a maximum of Rs 1,425 monthly. To motivate the youths to start a new chapter of their life, as from 01 January 2023, everyone reaching 18 years will be provided with a grant of Rs 20,000.
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