Pauline Etienne
8 August 2006
Port Louis — The Mauritius Revenue Authority (MRA) is likely to become more efficient. Thanks to the measures taken in the 2006-2007 budget, the MRA will have more time to deal with taxpayers' requests. As a result, not only will the services provided by the institution be better but the reform will also facilitate procedures for many taxpayers.
The first consequence of the income tax reform will be that many members of the public will no longer have to fill in any tax form as from September 2007. With the new system, the number of refunds will go from 80,000 to 5,000.
The employer will be able to deduct the exact amount of the tax that the employee has to pay. "The employer now knows the salary, the tax rate and the basic deductions of the employee. This will enable him/her to make tax adjustments. And this will prevent differences between the deductions and the amount of tax to be paid. Hence the employee will not have to pay more and to be reimbursed," explains the MRA general director, Sudhamo Lal. Moreover, a service centre will now deliver all information and services to members of the public and taxpayers.
But beside the fact that procedures for taxpayers will be facilitated, the new system will also allow the MRA to increase its revenues from Rs 31.9 billion for 2005-2006 to an expected amount of Rs 34.1 billion for 2006-2007. This Rs 2 billion increase is said to be due to the earnings of revenue collection among other factors.
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