The Mauritius Budget 2026–2027 is one of the most consequential in years for business owners. It pairs fiscal consolidation — bringing the deficit down to 3.7% of GDP — with a pro-investment agenda built around artificial intelligence, start-ups, and a modernised economic space. For anyone starting, running, or investing in a Mauritian business, it changes the numbers you plan around.
This guide is the plain-English overview. It summarises what actually matters for businesses and links out to detailed breakdowns of each topic. Every figure here comes directly from the Budget Speech 2026–2027 and its Annex.
The big picture
The Government framed this budget around being "future ready" while restoring fiscal discipline. The headline economic numbers:
| Indicator | 2025/26 | 2026/27 (forecast) |
|---|---|---|
| Total revenue | Rs 203.6 bn | Rs 235.5 bn |
| Total expenditure | Rs 250.1 bn | Rs 266.7 bn |
| Budget deficit | 6.0% of GDP | 3.7% of GDP |
| Public sector debt | 87.8% of GDP | 85.5% of GDP (by June 2027) |
For 2025, the Government cited unemployment at 5.7%, inflation down to 3.7%, reserves of USD 10.3 billion, and GDP growth of 3.2%.
Tax changes that affect businesses
The most important message for many: the VAT rate is not increasing — it stays at 15%. Beyond that, the budget reshapes several taxes.
- Personal income tax — a new band applies 20% on chargeable income from Rs 1 million to Rs 12 million, and 35% above Rs 12 million, replacing the fair share contribution for individuals. See our personal income tax guide.
- Corporate tax — the framework keeps the 3% reduced rate on goods exports (now excluding live animals) and introduces a generous investment tax credit for manufacturers. See corporate tax in Mauritius 2026.
- VAT — new rules for foreign digital-service suppliers, e-books exempt, common salt zero-rated. See VAT changes 2026.
- TDS (tax deduction at source) — extended to software contracts (1%) and social-media/influencer marketing (5%). See TDS changes 2026.
- Excise duty — +10% on tobacco and hard liquor from 20 June 2026 (wine and beer unchanged), higher sugar levy, and plastic-bottle duty extended. See excise duty 2026.
Incentives for investors and founders
This is where the budget is most ambitious:
- Start-ups get a dedicated Start-Up Act and a 10-year income tax holiday from the day of operations — full detail in our start-up tax holiday guide.
- The Golden Visa is enhanced with a pathway to permanent residence — see the Golden Visa 2026 guide.
- A new Special Economic Zone at Côte d'Or offers 100% foreign ownership, tax reliefs, and a special data-centre electricity tariff for AI and digital businesses — see the Côte d'Or SEZ guide.
- Occupation and work permits are overhauled, including a new USD 100,000 investor threshold and the abolition of the Family Occupation Permit — see occupation permit changes 2026.
Employer and compliance changes
Several measures change your obligations as an employer:
- Pension reform replaces the Basic Retirement Pension with the means-tested State Age Pension (SAP) from 1 January 2027, and replaces the NPF with the National Pension and Provident Fund (NPPF) from July 2027 — see the pension reform guide.
- Leave entitlements expand: maternity leave to 12 months, paternity leave to 6 weeks, plus paid menstrual leave — see the employer HR changes guide.
- Beneficial ownership and company compliance rules tighten — see company compliance 2026.
Key effective dates to diarise
| Date | What changes |
|---|---|
| 20 June 2026 | Excise increases on alcohol, tobacco, sugar-sweetened products |
| 1 July 2026 | Removal of certain corporate deductions; SRM thresholds rise |
| 1 September 2026 | Rs 150 processing fee for Simplified Customs Assessment Form |
| 1 October 2026 | Plastic-bottle excise extended; sugar levy widened to more products |
| 1 January 2027 | State Age Pension replaces BRP; Insurance Premium Tax (5%) starts |
| 1 July 2027 | NPF replaced by the new NPPF |
What you should do next
If you run or are planning a Mauritian business, the practical priorities are: re-check your permit category if you rely on an Occupation Permit, model the new income tax bands against your drawings, and review payroll for the pension and leave changes. Our free Cost Calculator can help you estimate the impact on your numbers.
Frequently Asked Questions
Is VAT increasing in the Mauritius Budget 2026–2027?
No. The Government confirmed there is no increase in the VAT rate — it remains at 15%. However, several VAT rules changed, including registration requirements for foreign digital-service suppliers and the exemption of electronic books.
What is the new top income tax rate in Mauritius?
A new personal income tax band introduces a 35% rate on chargeable income above Rs 12 million, while income from Rs 1 million to Rs 12 million is taxed at 20%. This replaces the fair share contribution for individuals.
When does the Mauritius pension reform take effect?
The State Age Pension (SAP) replaces the Basic Retirement Pension from 1 January 2027, and the new National Pension and Provident Fund (NPPF) replaces the National Pension Fund from 1 July 2027.
What incentives does the budget offer start-ups?
Start-ups benefit from a dedicated Start-Up Act and a 10-year income tax holiday applicable from the day operations begin, alongside an accelerator scheme at the EDB and a digital patent management system.
Where can I get help understanding how the budget affects my business?
KickOff Mauritius offers a free consultation to walk you through the changes relevant to your situation. You can also browse our directory of verified accountants and lawyers for professional advice.