tax revenue collection, he will, for the benefit of the House, obtain from the Mauritius Revenue Authority,…
(No. B/496) Mr R. Etwareea (Third Member for Grand’ Baie & Poudre d'Or) 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 tax revenue collection, he will, for the benefit of the House, obtain from the Mauritius Revenue Authority, information as to the total amount thereof outstanding as at 31 March 2026, giving a breakdown thereof, indicating the – (a) reasons therefor, and (b) measures being taken or envisaged to recoup same.
Madam Speaker, I am informed by the Mauritius Revenue Authority (MRA) that as at 31 March 2026, the total amount of tax revenue outstanding at the level of the Authority amounted to some Rs 25.7 billion. The breakdown is as follows – (a) Rs14.9 billion under Corporate Income Tax; (b) Rs7.1 billion under Value Added Tax; (c) Rs2.8 billion under Personal Income Tax; (d) Rs352 million under Betting and Gaming Taxes; (e) Rs254 million under Tax Deduction at Source, and (f) Rs249 million under other taxes collected by the MRA. In addition, an amount of Rs615 million was due under the Contribution Sociale Généralisée (CSG), and it has not been paid. With regard to part (a) of the question, the main reasons for the accumulation of tax arrears include – (a) taxpayers filing returns without paying the full amount of the tax payable; (b) unpaid tax on assessments raised by the MRA on taxpayers for under-declaration or non-declaration of income; (c) cases under objections or appeal having been determined, but where the tax due has not been fully paid, and (d) penalty and interest payable on tax due to the MRA. I am further informed, Madam Speaker, that the amount outstanding under corporate tax includes the case of Avago Technologies Trading Ltd., where the tax payable is around Rs 6.6 billion. This amount has become payable under the determination made by the Assessment Review Committee in regard to this case. However, the taxpayer has subsequently appealed to the Supreme Court without paying the tax due. Recovery actions have been initiated by the MRA and are under dispute at the moment at the Supreme Court. With regard to part (b) of the question, the MRA has informed that it has a specialised unit, namely the Debt Management Unit, which is responsible for the recovery of arrears. This Unit uses the various powers conferred to the MRA under the Mauritius Revenue Authority Act to recover tax debts. The most common and effective recovery powers are “attachment orders” on bank accounts and inscription of immovable property. Where the bank accounts of a debtor are frozen, the banks are required to remit the money in those accounts to the MRA to clear the tax debts. In cases where the debt exceeds Rs200,000, an inscription on immovable properties of the debtors is systematically taken. Madam Speaker, with a view to speed up the recovery of the amount of tax due, Government has, in the last Budget, renewed the Tax Arrears Settlement Scheme giving taxpayers a waiver of penalties and interests if the total amount of tax is paid. Additionally, two new schemes, namely the Tax Dispute Settlement Scheme and the Voluntary Disclosure Settlement Scheme were also put in place to improve tax compliance. A total amount of Rs2.27 billion has been collected under these 3 schemes up to March 2026. I am further informed that the MRA is currently working on new ways and means to speed up recovery of tax arrears. In this context, the MRA has already deployed more human resources to its Debt Management Unit. The MRA is also coming up with additional mechanism with a view to accelerating the recovery of outstanding amounts.
Yes, Mr Etwareea, fine? Okay. Now, we have the hon. First Member for Piton and Rivière du Rempart! DETAINEES – PROHIBITED ITEMS POSSESSION – REPORTED CASES (2023- 2026)