MRA collects : Rs 76 billion for year 2016-2017

Revenue collection by the Mauritius Revenue Authority (MRA) for the financial year 2016-2017 amounted to approximately Rs 76 billion as compared to Rs 70 billion for the year 2015-2016, thus representing an increase of 8.6%.

The figures were released by the Director-General of the MRA, Sudhamo Lal, at a press conference in Port Louis on Wednesday, focusing on the key performance of the MRA for the past financial year and on the implementation of the new budgetary measures brought in by the Finance (Miscellaneous Provisions) Act 2017. He expressed satisfaction regarding the MRA’s performance which he said is mostly attributed to the various tax policy measures, economic situation and efficiency gains in tax administration and also due to the introduction of the Fast Track VAT Refund Scheme since April 2017. He further highlighted that out of the Rs 76 billion collected, approximately Rs 75 billion will be allocated to the Consolidated Fund and another Rs 362 million for special funds such as Lotto Fund, Responsible Gambling and Capacity Building Fund and National CSR Foundation.

He underscored that the MRA has achieved better performance with regards to debt collections which amounted to Rs 1.9 billion for 2016-2017, in addition to income tax e-filing, e-payment and tracking of non-filers as well as from drug seizure.

Regarding the Finance (Miscellaneous Provisions) Act 2017, Mr Lal added that the MRA will focus on measures aiming at reducing income inequality and improving quality of life of citizens as announced in the budget 2017-2018. The measures are namely: negative income tax allowance for low income earners; the solidarity levy on high income earners; the statement of assets and liabilities by High Net Worth Individuals; the deduction for household employees; and other tax incentives.

In view of combating tax evasion and money laundering, he announced that the MRA intends to monitor the return of dividends by companies and the statement of financial transactions by banks, money changers and insurance companies. He added that as far as entry of illegal drugs and narcotics is concerned, emphasis will mainly be laid on drug interdiction projects, and cross border transportation of currency. Furthermore, Mr Lal urged tax payers to voluntarily comply with payment of tax and reiterated that the MRA aims to assist the population and create awareness that payment of tax is really not a burden but is a compulsory contribution.

It is the responsibility of every taxpayer, through voluntary compliance, to contribute something according to the need and payment capacity so that there is no enforcement or compulsion, he added.