Official Notice: Excise Duty on Sugar Content of Sugar-Sweetened Products in Mauritius
Introduction and Context
This official communication from the Mauritius Revenue Authority (MRA), dated 8 October 2020, informs stakeholders about the extension of excise duty regulations targeting sugar content in sugar-sweetened products. This measure aligns with the provisions outlined in the Budget Speech 2020-2021, specifically paragraphs 291 and A.4.(a) of the annex, aiming to promote public health by regulating sugar consumption through fiscal measures.
Scope and Applicability
The new excise duty applies to both locally manufactured and imported non-staple sugar-sweetened products. These include a broad range of consumables such as non-alcoholic beverages containing sugar—like fruit juices, milk-based drinks, and soft drinks—as well as various food items that are sweetened with sugar but are not staples of the regular diet. The regulation covers products like pastries, candies, chocolates, biscuits, ice creams, jams, marmalades, preserved fruits and nuts, as well as baked goods and cereal-based preparations.
The measure is effective from 1 November 2020, with specific licensing and registration requirements introduced for operators involved in the manufacturing and importation of these products.
Regulatory Changes and Main Provisions
Definition of Sugar-Sweetened Products
The Excise Act has been amended to include a precise definition of what constitutes a “sugar sweetened product.” These are non-alcoholic beverages containing sugar and non-staple sugar-sweetened foods, explicitly listed to ensure clear application of the duty.
Tax Rate and Calculation
The excise duty rate has been set at 6 cents per gram of sugar present in each product. This rate applies uniformly to both imported and locally produced items classified under this category, thereby establishing a clear fiscal framework for taxation based on sugar content.
Licensing and Registration Requirements
- All local manufacturers and importers of sugar-sweetened products must register as Economic Operators dealing in excisable goods. This involves submitting a registration form, designated as MRA/CUS/TFCC/REG/EO06.
- Applicants must also obtain an excise license specific to “Importer or manufacturer of sugar-sweetened products” by completing and submitting the relevant application form, MRA/CUS/EX/Form 7.
- Forms can be downloaded from the official Mauritius Revenue Authority website and must be submitted to the Excise Section at the Customs Department located at the Custom House, Mer Rouge, Port Louis.
Existing license holders for “Importer or manufacturer of sugar-sweetened non-alcoholic beverages” are exempt from reapplying but are required to renew their licenses for the year 2021 under the new classification.
Procedural Requirements for Customs Clearance
Manufacturers and importers are mandated to submit a bill of entry for each product, accompanied by specific documentation certifying the sugar content. This process ensures compliance with the excise duty calculation based on the actual sugar content of each product imported or manufactured locally.
Implications for Stakeholders
This regulation introduces a systematic approach to taxing sugar-sweetened products, encouraging manufacturers and importers to monitor and declare the sugar content accurately. It also emphasizes the importance of proper licensing and registration, facilitating compliance monitoring by the Mauritius Revenue Authority.
Stakeholders involved in the production or importation of sugar-sweetened products should ensure their registration and licensing are up to date to avoid penalties and facilitate smooth customs procedures. For further guidance or assistance, the Customs Department’s Excise Section can be contacted via the provided communication channels.
Contact and Further Information
For additional details regarding registration, licensing, or compliance procedures, stakeholders are encouraged to contact the Mauritius Revenue Authority’s Customs Department at +230 202 0500 or via email at customs@mra.mu. The official website, www.mra.mu, also provides access to relevant forms and updates related to this regulation.
