Exemption decreased from Rs 3,000 to Rs 1,000 for imports following the Budget 2020 – 2021

That’s a measure which makes online shopaholics quite unhappy 😎. This means that all personal purchases above Rs 1,000 will be eligible to VAT charges when clearing customs in Mauritius. Previously, only items above Rs 3, 000 were concerned as there was an exemption of Rs 3, 000.

And as you probably know, when you need to fetch an item at the Central Parcels Office, this also means that you might be required to pay additional charges, read further in the article.

This same government had increased the exemption from Rs 2000 to Rs 3000 in the budget of 2017-2018 and today, we are back to Square -1.

Taking for example, an item costing Rs 10,000:

YearItemExemptedChargeable VATTotal Cost
Prior Budget 2017-201810,0002,0008,0001,20011,200
After Budget 2017-201810,0003,0007,0001,05011,050
After Budget 2020-202110,0001,0009,0001,35011,350
Table showing VAT charges at different period of time

So, the happiness did not last for ever. On top of those prices, don’t forget that when you need to fetch your item at the Central Parcels Office, you might be required to pay other local charges such as

Fortunately, they did not review their decision of the Customs Broker Clearance limit from Rs 30,000 back to Rs 10,000. And just for info, this custom clearance limit was initially introduced in October 2012.

Should we blame Covid-19 ðŸĶ ?

Some people are saying this will encourage people to buy locally. IMHO, this reason is stupid as most items concerned by this measure will be electronic and telecommunication equipment such as mobile phones, tablets, etc.

As you can guess, it is just another easy way for the authorities to make more money. In creole, this is known as “ABC” ðŸĪŠ

Take care!

9 thoughts on “Exemption decreased from Rs 3,000 to Rs 1,000 for imports following the Budget 2020 – 2021

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  1. Hi,
    If I hadn’t read your blog, I wouldn’t have known about this new budgetary measure. So, a big thank you to you. Just wanted to confirm, this is applicable as from July 2020, right?

    Like

    1. Hehe, you should be visiting this blog more often then 😉

      It all depends on when they will change the law to take care of new limits. Right now, they have only announced changes, but we never know for sure.

      Like

    1. Hi.
      Difficult to say if the customs have already put this into practice or even if the law / regulations have been changed already.

      Need a cobaye to import an item and go through the customs lol.

      Like

  2. Hi..i want to buy glasses from Zenni optical which does not ship to Mauritius..do you know any alternative method available?..
    Also, glasses are way cheaper online than buying locally..can you advise me on the tax required to pay for a glass costing around Rs5000..
    Your help will be highly appreciated

    Like

    1. Hi.
      As long as borders are not opened and flights do not resume normally, many web sites are not shipping to the island, except if they deal with premium shipping such as DHL etc. So, do wait for some time if possible. Now, there are some sites which really do not ship outside specific countries/continents. In those cases, you can hire services of third parties such as shopandship and similar companies.
      Lastly, on a Rs5000 purchase, you will need to pay 15% tax on an amount of Rs4000.

      Like

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