Tax collection: Revenue Authority to innovate for higher growth

The Mauritius Revenue Authority (MRA) is called upon to look into innovative ways and means of further reducing the cost of doing business so as to promote trade, businesses and embark on a higher economic growth path and also position Mauritius among the top 10 countries on the Ease of Doing Business. This statement was made by the Minister of Finance, Mr Pravind Jugnauth, this week in the context of the celebrations marking the 10th anniversary of the MRA at the Intercontinental Hotel, Balaclava. The revenue authority remains a strategic partner for the government in the wake of the urgent socio-economic transformation of the country not only in terms of raising optimal revenue to finance public policies and economic development but also in providing to the public a living example of a most successful re-engineering of public sector institutions, stated Minister Jugnauth. ICT will be called upon to raise efficiency and improve delivery of public services. He expressed concerns with regards to the rising public debt, which is the biggest challenge confronting fiscal policy. Measured in accordance with the Public Debt Management Act, public sector debt has reached 56.4% of GDP as at June 30, 2016, compared to 55.6% last year. “The challenge is in the ‘arbitrage’ for the allocation of resources, for investment in public infrastructure, while at the same time addressing the needs of the poor and the vulnerable groups,” emphasised the Finance Minister. To this effect, the forthcoming Budget will contain several initiatives for modernising public management system, strengthening accountability, transparency and fiscal discipline. The Finance Minister also spoke on the fair jurisdiction and simple and transparent taxation system in Mauritius whereby tax rates are very competitive and the tax burden on the population is among the lowest – at less than 20% of GDP compared to over 30% for upper middle income and 35% for advanced economies. He further appealed to the MRA to pursue its efforts to bring taxpayers to fulfil their tax obligations and also to change attitudes towards taxation through education and communication while at the same respecting the rights of tax payers. The Minister reiterated his motto which is to strive for excellence in fulfilling our main roles and responsibilities so as to take the country to new heights. “It is the bold, innovative and visionary actions that we take today that shall determine the legacy that we shall leave to our children tomorrow,” he concluded. Since its inception in 2006, the MRA has continuously modernised tax administration, enhanced voluntary compliance and improved revenue collection for the State. During fiscal year 2015-16, the MRA collected some Rs 70 billion revenue from tax. Another Rs 8 billion have been collected by the Registrar-General’s Department and other agencies. Government also received Rs 12 billion from property income, dividends, user charges, and fines. Total government revenue collection for the last fiscal year stood at Rs 90 billion.