Presented in June 2026, Mauritius's 2026-2027 budget rests on two pillars: fiscal consolidation and attracting technology investment. The government targets a deficit cut to 3.7% of GDP (from 6% last year), with revenue projected at Rs 235.5 billion and public debt declining to 85.5% of GDP by June 2027.
Ten Years of Tax Exemption for Startups
The flagship measure for the entrepreneurial ecosystem: a 10-year income tax holiday for startups from the start of their operations. This is accompanied by a 45% investment tax credit over three years for manufacturers, and a Special Economic Zone at Côte d'Or dedicated to AI and digital companies — with 100% foreign ownership permitted and specific tax reliefs.
Personal Income Tax Reform
The income tax structure is being redesigned: a rate of 20% applies on chargeable income between Rs 1 million and Rs 12 million, and 35% above that threshold. VAT remains at 15%. Excise duties on tobacco and spirits increased 10% from June 20, 2026.
Pension Reform and Extended Leave
From January 1, 2027, the basic pension will be replaced by the State Age Pension (SAP). Maternity leave extends to 12 months and paternity leave to six weeks — two significant changes that will require employers to review their HR organisation and payroll structures.
Why It Matters
This budget sends a strong signal to foreign investors: Mauritius is reaffirming its ambition to be the Indian Ocean and Africa's tech gateway. The decade-long startup exemption and the Côte d'Or SEZ could attract regional fintech and AI structures seeking a stable legal and tax base. For established businesses, the pension reform and extended leave entitlements demand swift HR adjustments.