Since October 1, 2026, every plastic bottle sold in Mauritius carries a Rs 2 excise duty. Modest at first glance, this levy is one of the flagship measures of the Finance Bill 2026, adopted by the National Assembly on July 29. More broadly, this ambitious legislation overhauling Mauritius's fiscal architecture takes effect now, with immediate consequences for both businesses and households.
A Redesigned Income Tax Structure
The Finance Bill 2026 introduces a new progressive income tax scale: the first Rs 500,000 of taxable income is now exempt, followed by rates of 10%, 20% and 35% on higher brackets. The reform aims to boost the purchasing power of middle-income earners while raising the contribution of high earners — a direction in line with IMF recommendations for island economies with significant income inequality.
New Taxes, Fines Multiplied by 25
Alongside the plastics levy, a 5% tax on general insurance premiums has come into force with monthly payment to the Mauritius Revenue Authority (MRA). On the customs side, any importer of goods valued above Rs 500,000 must now justify the origin of funds. Administrative fines have been significantly tightened: the ceiling for minor violations has jumped from Rs 4,000 to Rs 100,000 — a 25-fold increase.
The MRA Armed Against Tax Fraud
The bill introduces an unprecedented data cross-referencing mechanism: water and electricity companies must report to the MRA any customer with an annual bill exceeding Rs 100,000, while insurers must flag auto premiums above Rs 2 million. The goal is to detect gaps between actual lifestyles and declared income. Additionally, the MRA director can now negotiate compliance agreements with taxpayers before any formal assessment — a first in Mauritius's regulatory history.
Why This Matters
With this legislation, Mauritius sends a dual signal: greater fiscal transparency in line with OECD and FATF standards, and a firm environmental commitment through the plastics tax. For foreign entities based on the island — fund managers, fintech firms, regional holding companies — the predictability of the regulatory framework is a key confidence factor. The Finance Bill 2026 reinforces Mauritius's trajectory as Africa's leading financial centre.