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# [MAURITIUS] Finance Bill 2026: Top Tax Rate Hits 35% as PwC Counts Eleven New Taxes in Seventeen Years
- URL: https://businessoi.media/en/maurice-finance-bill-2026-le-taux-dimposition-grimpe-a-35-et-pwc-recense-onze-nouvelles-taxes-en-dix-sept-ans-en/
- Published: 2026-08-08T08:43:14.000Z
- Updated: 2026-08-08T08:43:14.000Z
- Description: Mauritius's Finance Bill 2026, adopted in late July, introduces a 35% top tax rate for high earners, a Digital Services Tax and a plastic bottle levy from October. PwC counts 11 new taxes in 17 years — a historic shift away from the island's flat-tax model.
- Author: Emmanuel TAOCHY
- Tags: Maurice, Économie, Finances publiques, Flash de mi-journée, #en

Mauritius's parliament adopted the **Finance Bill 2026** in late July, marking the most ambitious fiscal overhaul since the flat-tax system was introduced in 2009\. For business leaders, one date to mark: **1 October 2026**, when several new provisions take effect.

## A Progressive Tax Bracket That Ends the Flat Tax Era

The legislation replaces the 15% flat income tax with four brackets. The first **Rs 500,000** of taxable income is exempt; the next tranche (up to Rs 1 million) is taxed at **10%**; a mid-tier rate of **20%** applies up to Rs 12 million; and income above that threshold now faces **35%** — more than double the previous maximum. PwC Mauritius warns this scale significantly shifts the island's competitive positioning for attracting international talent and entrepreneurs.

## Eleven New Taxes in Seventeen Years

In its analysis published 5 August 2026, PwC counts **eleven new business taxes since 2009**, several stacking on top of the Finance Bill 2026\. Key additions include:

- A **5% levy on general insurance premiums**, with monthly declarations required from insurers;
- An **excise duty of Rs 2 per plastic bottle**, effective 1 October 2026, covering imports and domestic sales (excluding essentials: rice, flour, medicines);
- A **Digital Services Tax** targeting foreign digital service providers — which PwC flags as a potential trigger for retaliatory measures from trading partners.

## VAT Windows and SME Concerns

The deadline to recover input VAT is **cut from 36 to 24 months**, while tax authorities retain a **four-year** assessment window — an imbalance PwC labels "disproportionate." For micro-businesses, Stephane Maurymoothoo of the Regrupman Artizan Morisien (RAM) sounds the alarm: "You cannot suffocate those who carry part of the economy." The rising cost of motor insurance disproportionately hits **1-to-3 employee** workshops that form the backbone of local craftsmanship.

## Parliamentary Pension Reform

The bill also restructures future deputies' pensions: from a **defined-benefit** to a **defined-contribution** system — 6% of monthly salary into an individual account, accessible at 55 or 65\. It replaces a system that previously granted a pension after just two terms.

## Why It Matters

For three decades, Mauritius built its appeal on low taxation. Finance Bill 2026 marks a turning point: post-Covid fiscal pressure, rising public debt and IMF requirements are pushing Port-Louis to broaden its tax base. The gamble is real — Mauritius still competes directly with Dubai, Singapore and the Seychelles for Indian Ocean capital and talent. PwC is cautious: the intent is understandable, but an accumulating tax burden sends a worrying signal to investors.

*Sources: PwC Mauritius (5 August 2026 analysis), Defimedia, Le Mauricien, allAfrica.com.*