National Budget 2025-2026 Unveiled: Key Points to Know

The 2025-2026 budget, the first since the recent elections, was presented on June 5 in the National Assembly by Prime Minister and Finance Minister Navin Ramgoolam.

Here are the main highlights:

Retirement Age
The pension age will gradually rise to 65 over the next five years.

Social Benefits
Current social assistance programs will remain in place but will be phased out gradually by 2027.

Social Protection Reform
The reform of the National Pension Fund (NPF) could replace the existing CSG system, aiming for a more sustainable social safety net.

Tax on Food
Taxes on certain food products will be eliminated to reduce costs for consumers.

Minimum Wage
A guaranteed monthly income of Rs 20,000 will be introduced for all full-time workers, ensuring a basic standard of living.

Taxation Measures
A new contribution will be levied on very high incomes to increase revenue.

Price Hikes
Prices for alcohol and cigarettes will go up.

Vehicle Imports
Import taxes on vehicles will be increased to curb the number of cars on the roads.

Excise Duty Extension
Taxes will be extended to include chocolates and ice creams, targeting additional revenue sources.

Tourism Tax
A new tourist tax of €3 per night will be introduced to boost tourism funding.

Digital Services
VAT will now be applied to services offered by foreign digital platforms, closing a loophole.

Education Funding
The government will review the current free university program and the financing of free pre-primary education to ensure sustainability.

This budget signals a mix of social support, tax reforms, and measures aimed at managing consumption and mobility, with the government seeking to balance social needs and fiscal responsibility.

Source: Defi Media