Cabinet decisions - Progressive income tax to come into operation on January 1, 2018 |31 August 2017

Reform of the taxation system dominated the special meeting of the Cabinet yesterday afternoon at State House and chaired by President Danny Faure.

A communiqué from State House wrote that session focused mainly on options for the reform of the taxation system, drawn up following extensive discussions which the Ministry of Finance, Trade and Economic Planning had held with the private sector and other stakeholders.

Cabinet approved for a system of progressive income tax to come into operation from January 1, 2018.

Cabinet also decided that as from January 1, 2018 there should be exemption from tax on payments of compensation due upon termination of employment, as well as on payments of gratuity, bonuses and the 13th month salary.