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Mauritius: Budget Brief 2024/2025 – an overview of the salient measures

7 June 2024
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Overview

  • The fifth and final budget of the current government’s mandate was presented by Dr. the Honourable Renganaden Padayachy, the Minister of Finance, Economic Planning and Development on the 7th June 2024, with the theme “Tomorrow is ours”.

The fifth and final budget of the current government’s mandate was presented by Dr. the Honourable Renganaden Padayachy, the Minister of Finance, Economic Planning and Development on the 7th June 2024, with the theme “Tomorrow is ours”. This year’s budget, which is a continuation of the previous budgets, was prepared focussing on three pillars:

  • Fostering Economic Dynamism;
  • Working towards a sustainable and inclusive Mauritius; and
  • Building our future. 

Improving the ease of doing business

The ease of doing business remains a priority of this budget as well, with most measures being geared to reduce the processing time of application for permits and licences, introducing and improving upon e-applications, with the EDB working with various authorities to double the number of licences delivered electronically within the next 3 years. 

Financial Services

Recognising the financial services sector as the first contributor to the GDP of Mauritius,  some of the highlights of the measures announced for this sector include the introduction of a blueprint for the development of Mauritius as a FinTech Hub, reviewing the blueprint of the financial services sector and the funds regime to enhance the attractiveness of the jurisdiction; strategic partnership agreements with India and African countries; collaboration with India to further develop our financial services sector.

Sustainability and tackling Climate Change

  • Sustainability and climate change have been a major focus of this year’s budget. Measures announced include the promotion of a circular economy, greening of the island and conservation of the terrestrial and coastal landmarks. 
  • In a bid to finance these measures, including the climate agenda, the Government has announced the introduction of a Corporate Climate Responsibility levy, of 2% of the company’s profits for companies with a turnover of MUR 50 million or more. A Climate and Sustainability Fund will be set up to fund these measures. 

Export Sector

  • The export sector is also being revamped with the introduction of an export promotion fund, setting up of a public-private sector Export Development Council to devise export strategies, extending the Africa Warehousing Scheme up to 2027 and expanding it to Kenya. 
  • Freight Rebate, the Trade Promotion and Marketing which will now also include New Zealand, and the Export Credit Guarantee Schemes will be renewed for an additional year. 

Concluding remarks

  • This year’s budget is mostly a budget of continuity, with a focus on the social measures for the people of the country. 
  • Measures in the financial services sector remain shy. However, this remains to be seen with the review of the financial services blueprint and the introduction of the blueprint for FinTech. 

Click here to read our detailed Budget Brief.