Pre-budget consultations focus on tax reforms and social protection measures

Taxation measures, cost-of-living relief and proposals to strengthen social protection were at the forefront of discussions during a pre-budget consultative meeting held this afternoon in Port Louis ahead of the forthcoming National Budget 2026–2027.

The Junior Minister of Finance, Mr Dhaneshwar Damry, met representatives of various consumer associations, including the Mauritius Taxpayers Association, the Association des Consommateurs de l’Ile Maurice (ACIM) and the Consumers’ Eye Association, as part of ongoing stakeholder consultations.

In a statement following the meeting, the President of the Mauritius Taxpayers Association, Mr Raffick Sufurhally, highlighted a proposal to revise the current tax deduction framework for couples with children, noting that at present only one spouse may claim such deductions. He suggested that deductions be shared between spouses, particularly in households with two or three children. He also referred to changes in the tax structure, indicating that the previous system of multiple tax bands has, since 2024, been streamlined into two bands of 10% and 20%.

Furthermore, Mr Sufurhally pointed out that issues relating to petroleum products were raised, alongside proposals to remove taxes on hybrid and electric vehicles to encourage more sustainable transport options. He additionally proposed that old-age pensions be exempt from taxation, adding that these measures are expected to contribute to the broader budgetary deliberations ahead of the 2026–2027 National Budget.

For his part, the Secretary-General of ACIM, Mr Jayen Chellum, called for the removal of Value Added Tax on essential food items, with safeguards to ensure that price reductions are passed on to consumers. He also suggested a rebate mechanism on freight costs to help contain import-related price increases and proposed the setting up of a dedicated food agency to coordinate food security matters.

As for the Secretary-General of the Consumers’ Eye Association, Mr Claude Canabady, he outlined five proposals focusing on support for vulnerable groups, including a tax on luxury items to fund social assistance measures, as well as the establishment of a health ombudsperson to improve accountability in the healthcare sector.

30 April 2026

Email: gis@govmu.org

Website: https://gis.govmu.org

Mobile App: GIS News

Topics: Finance