[Blog] Citizen Contribution to Budget 2026/27 – Part II

By Dharamraj Deenoo-Civic Steward

Towards a Green & Blue Fiscal Architecture for Mauritius

Mauritius stands at a historic juncture. The Government’s three-pronged strategy—Economic Renewal, A New Social Order, and Fiscal Consolidation—offers a framework to reimagine our nation’s future. As citizens, we propose bold measures that align with this vision while unlocking new sources of growth and resilience.

1. Economic Renewal – The Blue Finance Hub

Mauritius must position itself as a Blue Finance Hub, a growth pole that channels capital into non-traditional sectors of GDP.

• Blue Economy Blended Subsidy: Government guarantees or interest subsidies for Blue Bonds issued on the Mauritius Stock Exchange, funding marine biotechnology and sustainable aquaculture.
• Carbon Offset Trading Exemption: A tailored corporate tax regime for asset managers trading African carbon and plastic credits via Mauritius entities. This establishes Port-Louis as the premier green trading floor of Africa, attracting foreign exchange and investment.
• Targeted Super Deduction for Green Tech: 100% tax deduction on R&D in waste-to-wealth, marine biotechnology, and wave energy. This incentivises conglomerates to pivot capital away from real estate into high-productivity innovation.
• Green Talent Tax Holidays: Extend tax exemptions to foreign and diaspora experts in climate fintech, regardless of age, for their first three years. This addresses structural labour shortages and accelerates the island’s tech transition.

2.  A New Social Order – Sustainability with Equity

Economic transformation must be anchored in social justice.

• Carbon Taxation with Offset Allowances: Targeted rollout for iron, steel, energy, and cement industries, balanced with offset credits for green investments.
• Emission Tracking System: A transparent digital framework to monitor industrial emissions, ensuring accountability and credibility in climate commitments.
• Inclusive Innovation: SMEs and youth-led enterprises gain access to export councils and blended finance, ensuring that sustainability is not the privilege of a few but the opportunity of many.

3. Fiscal Consolidation – Blended Finance and Digital Modernisation

Mauritius must reduce its reliance on public borrowings by matching private capital with government guarantees and broadening its fiscal base to reflect the realities of a digital economy.

• Blended Finance Instruments: Blue Bonds, carbon trading exemptions, and targeted guarantees mobilise private sector resources while safeguarding fiscal discipline.
• Extension of VAT on Digital Services & E‑Commerce: By expanding VAT coverage to online platforms and digital transactions, Mauritius secures a new, steady revenue stream without increasing rates on traditional sectors. This ensures fairness and modernises the tax system in line with global trends.
• Digital Trade Hub: Establish Port‑Louis as a gateway for African e‑commerce, integrating customs facilitation, fintech payment gateways, and logistics partnerships. This captures transaction flows, generates service exports, and positions Mauritius as a regional leader in digital trade.

4. The Expected Impact

 These measures consolidate fiscal stability by diversifying revenue sources, reducing dependence on debt, and embedding Mauritius firmly within both the Green & Blue Economy and the Digital Economy.

• Revenue Growth: Carbon taxes, trading exemptions, and new corporate tax regimes.
• Investment Surge: Blue Bonds and super deductions channel private capital into innovation.
• Global Branding: Mauritius becomes synonymous with Green Finance + Blue Economy.
• Resilience: Diversifies the economy away from dependence on tourism and real estate.

5. In conclusion, Budget 2026/27 can mark the dawn of a new fiscal architecture—one that blends prudence with innovation, equity with sustainability, and tradition with renewal. Mauritius has the opportunity to lead Africa as a Green Finance Hub and Blue Economy pioneer, while consolidating its fiscal foundations for generations to come.