Mauritius: Selected Issues
IMF Staff Country Reports, June 18, 2025
Source details
- Canonical URL
- Mauritius: Selected Issues
Other formats
Bibliographic details
- Published: June 18, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229014960.002
Overview
- Assesses the extent to which Mauritius can recalibrate its fiscal policy to restore fiscal sustainability while protecting the poor and the vulnerable.
- Takes stock of the evolution of poverty and inequality in recent years.
- Discusses potential options to reform social transfers and tax exemptions while safeguarding poverty objectives.
- Notes currently limited fiscal space to support long-term growth and the aim of rebuilding policy buffers through fiscal consolidation while preserving recent gains in social and poverty indicators.
Key findings
- Analysis based on the 2023 household survey data suggests that there is room to make savings on social expenditure and increase tax revenue.
- It should be possible to implement savings and revenue measures while continuing to protect the poor and the vulnerable.
Policy options and recommendations
- Better targeting of social benefits to improve efficiency of social expenditure.
- Reform the value-added tax (VAT) through streamlining of exemptions.
- Reform the personal income tax through streamlining of allowances and reducing the tax payment threshold.
- Implement these measures in a manner that safeguards poverty objectives and protects vulnerable groups.
Content in this bundle
- Mauritius: Selected Issues; IMF Country Report No. 25/137; May 28, 2025