Question to the Prime Minister - Tax Arrears: Rs 25.7 Billion Owed to the MRA as of March 31
In the National Assembly on Tuesday, April 28, Prime Minister Navin Ramgoolam responded to a question from MP Ram Etwareea of the Mauritian Militant Movement. He stated that Rs 25.7 billion in tax revenues are owed to the state as of March 31, 2026.
According to information provided by the Mauritius Revenue Authority (MRA) to the head of government, these arrears break down as follows: Rs 14.9 billion in corporate income tax, Rs 7.1 billion in value-added tax (VAT), Rs 2.8 billion in personal income tax, Rs 352 million related to betting and gaming taxes, Rs 254 million in withholding tax, and Rs 249 million for other taxes collected by the tax authority. Rs 615 million is owed in the General Social Contribution.
Tax Debts
The Prime Minister indicated that several factors contribute to the accumulation of these tax arrears.
He explained that the MRA attributes this situation mainly to taxpayers submitting their declarations without paying the total amount of tax owed. He also mentioned instances of under-reporting or failure to report income, leading to unresolved tax adjustments.
The head of government also pointed out ongoing tax disputes, explaining that some cases, although resolved on appeal or objection, remain unpaid. Additionally, penalties and accrued interest on owed amounts further increase the overall tax debt.
Avago Technologies Trading Ltd
Among the significant amounts, the Prime Minister highlighted the case of Avago Technologies Trading Ltd, which owes approximately Rs 6.6 billion.
Navin Ramgoolam stated that this amount became due following a decision by the Assessment Review Committee. However, the concerned taxpayer has appealed to the Supreme Court without settling the owed amount. The Prime Minister clarified that "collection actions have been initiated by the MRA and are currently subject to litigation in the Supreme Court."
Specialized Unit
In response to the part of the question regarding collection mechanisms, the head of government recalled that the MRA has a specialized unit, the Debt Management Unit, tasked with recovering tax arrears.
This unit utilizes the powers granted to the MRA by current legislation to recover tax debts. Common measures include "garnishments" on bank accounts and liens on the real estate of debtors.
The Prime Minister explained that when bank accounts are frozen, financial institutions transfer available funds to the MRA to settle tax debts. In cases where the debt exceeds Rs 200,000, a lien on the taxpayer's property is systematically imposed.
Rs 2.27 Billion Recovered
Navin Ramgoolam also mentioned the measures implemented by the government to expedite the collection of arrears.
In the latest budget, the government extended a Tax Arrears Settlement Scheme allowing taxpayers to benefit from a waiver of penalties and interest, provided they pay the principal of the tax debt.
Two new schemes have also been introduced: the Tax Dispute Settlement Scheme and the Voluntary Disclosure Settlement Scheme, aimed respectively at resolving tax disputes and encouraging voluntary declarations. These three mechanisms have enabled the recovery of Rs 2.27 billion by the end of March 2026.
Capacity Building
The Prime Minister stated that the MRA is working on new mechanisms to expedite the collection of tax arrears.
The tax administration has strengthened the staffing of its Debt Management Unit. Other tools and procedures are being developed to improve collection efficiency. These measures aim to enhance tax discipline and gradually reduce the level of unpaid debts.
