Ramakrishna Sithanen, the vice prime minister, minister of finance and economic empowerment, presented his fifth and last budget speech under the mandate of the present government.

These are some of the announcements:

Fiscal measures

• Companies listed on the stock exchange and having a foreign minority shareholding will be allowed to acquire immovable property without prior approval from the prime minister's office
• The tax deduction at source on payment of royalties to nonresidents will increase from 10% to 15% (note that royalty payments from a global business companies licensee do not attract any tax deduction at source)
• The procedure for registration and renewal of charges at the Registrar General's department is being simplified and time limit for submission of documents is being reduced
• The latest date for submission of tax returns will be moved to two working days before the end of the year instead of December 31
• No change on income tax rate for individuals and corporations
• No change in VAT rate (15%)
• Abolishing Customs duty on fluorescent kit and LED fixtures, including street lighting lamps
• Reducing customs duty from 30% to 15% on television sets of more than 32 inches. Custom duty on televisions of up to 32 inches is being abolished
• The betting tax on foreign football matches is being increased from 2% to 8%

Financial measures

The government will pass an innovative and competitive law on private foundations. This will allow the setting up of foundations in our global business sector to further promote Mauritius as a platform for wealth management, services succession and estate planning as well as pension funds.

To expand the scope of the financial industry and to market products internationally, the Financial Services Commission will seek recognition as an equivalent jurisdiction with other financial centres.

The government will undertake a study on the appropriate fiscal regime to improve the competitiveness of Mauritius as a business centre for funds.

Gary Gowrea (gary.gowrea@multiconsult.mu)