(No. B/637) Ms J. Bérenger (First Member for Vacoas & Floreal) asked the Prime Minister, Minister of Defence, Home Affairs and External Communications, Minister of Finance, Minister for Rodrigues and Outer Islands whether, in regard to the Fair Share Contribution, as announced in the Budget Speech 2025-2026 and subsequently amended, he will, for the benefit of the House, obtain from the Mauritius Revenue Authority, information as to the – (a) amount of revenue projected under the original measure; (b) revised amount of revenue expected following the amendments, and (c) number of individual taxpayers and companies expected to be liable under the original and revised schemes, respectively. The Ag. Prime Minister: Madam Speaker, as everyone knows, the previous Government left public finances in an unprecedented state of precariousness, a disastrous legacy hindering our actions. The economic mismanagement and irresponsible fiscal stewardship have led to public debt soaring beyond unbelievable level and the country edging to the brink of a downgrade to speculative grade (junk status) by Moody's. In the last budget, Government had to, accordingly, focus its efforts on bold fiscal consolidation measures to address the situation, including implementation of several measures to increase revenue from income tax collected from individuals and corporates. Indeed, one of the main decisions was to appeal to the spirit of solidarity among the more fortunate, urging them to support the most vulnerable and disadvantaged members of our society. A Fair Share Contribution has been introduced for three years on high income earners and highly profitable corporations. Madam Speaker, let me remind the House that, in spite of the pressing need for fiscal consolidation, the Personal Income Tax System was reviewed to make it fairer. The income tax exemption threshold was raised by Rs110,000 and the number of tax bands was reduced from 11 to only 3. As a result, it was estimated that 44,000 income earners would be removed from the tax net while some 75,000 individuals, earning between Rs500,000 and Rs1 million in a year, would actually pay less income tax than under the previous tax structure. The tax structure becomes more progressive above the Rs1 million threshold. The wealthiest taxpayers, in addition to their normal income tax payable, are required to contribute under the Fair Share Contribution for 3 years, an extra 15% of their chargeable income in excess of Rs12 million. Madam Speaker, in the Budget Speech, it was announced that a high-income earner, earning an annual net income exceeding Rs12 million, inclusive of dividend income, will be required to pay a Fair Share Contribution at the rate of 15% of his chargeable income after adding thereto any dividend income received during the year from domestic companies. On 17 June 2025, with a view to dispelling any doubt about the interpretation of paragraph 272 of the Budget Speech 2025-2026 relating to the Fair Share Contribution, the Prime Minister informed the House that it relates to a high income earner, earning annual net income exceeding Rs12 million, inclusive of dividend income received during the year from domestic companies, who will be required to pay a Fair Share Contribution at the rate of 15% of his chargeable income in excess of Rs12 million. This clarification was brought to provide tax certainty and maintain the attractiveness of our jurisdiction to high-net-worth individuals and for high-end foreign talents and investors. Madam Speaker, as regards corporate income tax, in the last budget Government has, inter alia, introduced an Alternative Minimum Tax on certain profitable sectors with low effective tax rate. A Qualified Domestic Minimum Top-Up Tax was also introduced on a resident parent or subsidiary of a large multinational enterprise to raise their effective tax rate to 15%. In addition, a Fair Share Contribution of up to 5% of chargeable income has been introduced for three years on domestic enterprises having annual chargeable income above Rs24 million. There is an additional Fair Share Contribution of 2.5% on the chargeable income of banks on their domestic operations. Madam Speaker, representations were received from banks and telecom operators, raising concern that they are already subject to special levies imposed partly on turnover and that the Fair Share Contribution would increase their effective tax rates to excessive levels. It was accordingly decided that the tax burden of banks and telecom operators, that is, the aggregate of corporate tax, levy, corporate climate responsibility levy, corporate social responsibility, and Fair Share Contribution will be capped at 35% of their chargeable income. Madam Speaker, as regards part (a), (b) and (c) of the question, regarding the impact of the change brought to the Fair Share Contribution, I am informed by the MRA as follows – (a) the initial annual projected contribution from individuals was Rs1.3 billion and from corporates Rs3.8 billion; (b) the revised annual projection from individuals is Rs535 million and from corporates Rs3.25 billion – yes, Rs3.25 billion – bulk of which comes from banks and the financial services sector, and (c) the initial estimated number of individuals subject to the contribution was 425 and the revised projection 405, whilst there is no change in the estimated number of liable corporates which was estimated at 573. Madam Speaker, revisions were brought to the Fair Share Contribution to strike an appropriate balance between revenue mobilisation objectives and the need to ensure fairness, equity, and competitiveness for both individuals and businesses, while also safeguarding economic activity and maintaining Mauritius as an attractive jurisdiction for investment. Madam Speaker, both the IMF and Moody's Ratings have, in their recent reports, acknowledged the concrete progress being made by the Government in restoring economic stability and consolidating public finances. The IMF has specifically underlined that our fiscal position is expected to improve significantly this year, reflecting higher revenues mainly from the Fair Share Contribution. Madam Speaker: Yes, you have one?