Personal tax
- The tax rate of 15% applicable to individuals has remained unchanged.
- The income tax threshold is increased by Rs 25,000 in respect of all four previous categories of tax payers.
- Two special income exemption thresholds for retired persons have been introduced. For retired persons who do not have any dependent, the threshold will be raised from Rs 215,000 to Rs 285,000. For retired persons with one dependent, the threshold is raised from Rs 325,000 to Rs 395,000.
Corporate tax
- The tax rate of 15% applicable to companies in general has remained unchanged.
VAT
- VAT on certain soluble chemicals used as nutrients in specialized cultures like hydroponics and on certain chemicals used in agriculture has been removed.
- Pharmaceutical products will henceforth be zero-rated for VAT purposes.
Registration duty and Land Transfer tax
- Land transfer tax and registration duty are waived on the transfer of agricultural land by the sugar corporates to métayers. Registration charges on new métayer lease contracts are also waived.
- Transfer of shares in companies holding immovable property will henceforth be subject to land transfer tax.
- New rates of land transfer tax for large transactions (where the value of the land exceeds Rs 50 million) have been introduced. The new rates will be 15 percent where the transfer is made within five years from the date of acquisition and 10 percent in other cases.
- The rate of registration duty payable on acquisition of an IRS residence has changed and will be 5 percent on the value of the property or US$ 70,000, whichever is higher.
Customs and Excise duty
- Taxes on hybrid vehicles are reduced by half. Starting on 1st July 2008, excise duties, road tax and registration fees will also be halved for such vehicles.
- Customs duty on all tyres with energy saves and emission reducing certification is eliminated.
- Excise duty on cigarettes and alcoholic beverages have been reviewed - the different excise categories are eliminated and replaced by a single excise duty rate of Rs 2,200 per thousand cigarettes. Customs duty on cigarettes is abolished.
- As from 1 July 2008, excise will be due for both locally manufactured and imported products upon the validation of the declaration at customs.
- From 1 July 2009 all permits relating to imports and exports, except those that are considered essential, will be suspended.
- Customs duty on almost all foodstuffs is eliminated.
- Customs duty on articles commonly used by households have been lowered.
- Customs duty on envelopes, letter cards, box files, letter trays, exercise book, registers, account books, scratch cards, greeting cards has been halved to 15 percent.
- Customs duty on double space cabin vehicles without rear bed-caisson and all single space cabin vehicles is removed for small sugar cane planters, vegetable and flower growers, etc.
Levy
- A token levy will have to be paid into the MAURICE ILE DURABLE (MID) Fund, of 15 cents per litre on all petroleum products, 15 cents per kilo on LPG and 15 cents per kilo of coal.
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