In the context of the forthcoming budget, the Mauritius Taxpayers Association (MTPA) has suggested possible solutions to the government to alleviate the burden of taxpayers. In that context, the association proposed an increase of at least 10 % in the Income Exemption Threshold for all categories of taxpayers.
The association believes that the sharp depreciation of the Mauritian Rupee against major currencies at an average of 10-15 % has resulted in an increase in the cost of living.
Consequently, the MTPA is proposing an increase in IET of at least 10 % for all categories of taxpayers. The MTPA also appreciates government’s efforts during the last two years to alleviate the burden of taxpayers in the lower /middle income category by introducing a tax band of 10% for those earning a total net annual income below Rs700 000. However, the minister could go one step further by introducing a tax of 5% for those having an annual income below Rs585 000 (Rs 45 000 monthly).
The association is of the view that the present policy regarding IET for children, which is limited to only one child is unfair, arbitrary, and punitive. “The paradox is that the couple can share deductions for solar energy but cannot share costs to keep their children. In Singapore, both father and mother may share the PARENTHOOD TAX REBATE. The association also wants the abolition of residential tax in urban areas”, said the MTPA.
“Following our previous request for the introduction of residential tax outside urban areas, we welcome government’s decision to abolish residential tax for a person’s main residence across the island. This brings fairness and equity. This policy has not been implemented yet and MTPA is awaiting its implementation soon. The MTPA, however, would not object to the imposition of “une Taxe résidentielle generalisée” that would be levied to all residences across the island based on their annual rental value. This measure would allow government to collect substantial additional income to relieve its budget ‘deficit’, suggests the MTPA in its memorandum.