The Finance Act 2003

THE FINANCE ACT 2003

Act No. 18 of 2003

I assent

KARL AUGUSTE OFFMANN

President of the Republic

21st July 2003

Date in Force:

(1) Sections 4, 9(l) and (m) shall be deemed to have come into operation on 1 July 2003.

(2) Section 7(b)(i) and (ii) shall be deemed to have come into operation on 10 June 2003.

(3) Sections 7(c) and 19(k)(iii) and (l)(ii) shall come into operation on 1 January

2004.

(4) Section 8(e)(i) in so far as it relates to paragraph (a)(i)(B) as inserted in section 19(3) of the Freeport Act 2001 shall come into operation on 1 July 2004.

(5) Section 9(a)(i), (c), (e), (p)(ii) in so far as it relates to subparagraph (C), (q) and (r) shall be deemed to have come into operation as from the income year commencing 1 July 2003.

(6) Section 9(a)(ii) shall be deemed to have come into operation on 8 October 2002.

(7) Section 9(a)(iii), (b), (d), (f), (g), (h), (i), (o) and (p)(i)(A) and (C) shall be deemed to have come into operation as from the year of assessment commencing 1 July 2003.

(8) Sections 9(j) and (k), 10 and 19(k)(v) in so far as it relates to paragraph (i)(i) as inserted in the First Schedule to the Value Added Tax Act and (o)(ii)(A) in so far as it relates to item 2(a) and (iii) as amended and added in Part II of the new Tenth Schedule to the Value Added Tax Act shall come into operation on 1 September 2003.

(9) Section 9(n) shall be deemed to have come into operation as from the income year commencing 1 July 2001.

(10) Section 9(p)(i)(B) and (iii) shall be deemed to have come into operation on 20August 2002.

(11) Section 9(p)(ii) in so far as it relates to subparagraph (A) and (B) shall be deemed to have come into operation as from the income year commencing 1 July 2002.

(12) Sections 19(e), (k)(iv) and (v) in so far as it relates to paragraph (i)(ii) as inserted in the First Schedule to the Value Added Tax Act and (o)(i), (ii)(A) in so far as it relates to item 2(b) and (B) as amended and added in Part II of the new Tenth Schedule to the Value Added Tax Act shall come into operation on 1 October 2003.

(13) Section 19(n) shall be deemed to have come into operation -

(a) in so far as it relates to Part I of the Tenth Schedule, on 1 October 2002;

(b) in so far as it relates to Part II of the Tenth Schedule, on 10January 2003.

______

ARRANGEMENT OF SECTIONS

Section

1. Short title

2. The Banking Act amended

3. The Bank of Mauritius Act amended

4. The Civil Aviation Act amended

5. The Customs Act amended

6. The Customs Tariff Act amended

7. The Excise Act amended

8. The Freeport Act 2001 amended

9. The Income Tax Act amended

10. The Industrial and Vocational Training Board Act amended

11. The Investment Promotion Act amended

12. The Land (Duties and Taxes) Act amended

13. The Legal Aid Act amended

14. The Loans Act amended

15. The Pensions Act amended

16. The Registration Duty Act amended

17. The Stock Exchange Act amended

18. The Unified Revenue Act amended

19. The Value Added Tax Act amended

20. Validation of resolution

21. Commencement

______

An Act

To provide for the implementation of measures announced in the Budget Speech and for the strengthening and streamlining of certain provisions relating mainly to revenue and public finance

ENACTED by the Parliament of Mauritius as follows -

1. Short title

This Act may be cited as the Finance Act 2003.

2. The Banking Act amended

The Banking Act is amended in Part VII, by inserting immediately before section 34, the following new section -

33A. Derogations from articles 1659, 1660, 1661, 1673, 2087 and 2088 of the Code Civil Mauricien for the purposes of repurchase transactions

(1) Pursuant to the second alinea of article 2094 of the Code Civil Mauricien and notwithstanding any other enactment -

(a) articles 1659, 1660, 1661 and 1673 of the Code Civil Mauricien shall not apply to commercial contracts involving purchases made with a provision for repurchase of -

(i) Treasury Bills;

(ii) Bank of Mauritius Bills; or

(iii) such other instruments as the central bank may specify,

among banks and such other financial institutions as the central bank may specify; and

(b) articles 2087 and 2088 of the Code Civil Mauricien shall not apply to securities given for the repurchase of instruments referred to in paragraph (a).

(2) The Central Bank shall, by direction, specify the terms and conditions under which repurchase transactions may be entered into.

3. The Bank of Mauritius Act amended

The Bank of Mauritius Act is amended -

(a) in section 2, by inserting in its appropriate alphabetical order, the following new definition -

“Bill” means a Bank of Mauritius Bill issued under section 12A;

(b) in section 12, by inserting immediately after subsection (n), the following new subsection -

(na) issue Bank of Mauritius Bills;

12A. Bank of Mauritius Bills

(1) The Bank may raise, for monetary policy purposes, loans by the issue of Bank of Mauritius Bills.

(2) Every Bill shall -

(a) be issued by the Bank in such form and subject to such conditions as may be determined by the Bank;

(b) be in such multiples and currencies as may be determined by the Bank;

(d) specify the date of its maturity.

(3) A Bill may be redeemed, before the date of its maturity, on such terms and conditions as may be agreed.

(4) The proceeds of the issue of Bills shall be paid to the Bank.

(5) Every Bill shall, on redemption, be cancelled by the Bank.

4. The Civil Aviation Act amended

The Civil Aviation Act is amended in section 11, in subsection (2), by deleting the words "and the making of charges" and replacing them by the words “, the making of charges and the non-application of the surcharge leviable under the Finance Act 1980 and the Finance Act 1981".

5. The Customs Act amended

The Customs Act is amended -

(a) in section 19, by repealing subsection (3) and replacing it by the following subsections -

(3) Where the importer disputes the value of the goods determined by the

Comptroller, the importer may ask for the review of the notice under subsection (2), within 28 days of the date of the notice and shall for that purpose lodge with the Secretary, Assessment Review Committee, in accordance with section 8E of the Unified Revenue Act, written representations specifying precisely the reasons thereof.

(4) Any dispute on valuation of goods pending immediately before the

commencement of subsection (3) shall, on the commencement of that subsection, be deemed to have satisfied the requirements for the lodging of a review before the Assessment Review Committee under that subsection.

(b) by deleting section 20 and replacing it by the following section -

20. Disputes relating to classification or origin of goods

(1) Where in respect of an entry of any goods, the Comptroller is not satisfied with the classification or origin of the goods, he shall, on the basis of such information as is available to him and on such information as is provided by the importer or exporter, determine the classification or origin of those goods.

(2) On a determination under subsection (1), the Comptroller shall give to the importer or exporter notice in writing thereof.

(3) Where the importer or exporter disputes the classification or origin of the goods as determined by the Comptroller under subsection (1), the importer or exporter may ask for the review of the notice under subsection (2), within 28 days of the date of the notice and shall for that purpose lodge with the Secretary, Assessment Review Committee, in accordance with section 8E of the Unified Revenue Act, written representations specifying precisely the reasons thereof.

(4) Any dispute on classification or origin of goods, pending immediately before the commencement of this section shall, on the commencement of this section be deemed to have satisfied the requirements for the lodging of a review before the Assessment Review Committee under subsection (3).

(d) in section 49, by deleting subsection (1) and replacing it by the following subsection -

(1) The master, owner or duly authorised agent of every ship or aircraft arriving from ports or airports beyond the seas shall make report to the Comptroller by delivering a full and complete inward manifest, both in electronic form and hard copy or in any other manner acceptable to the Comptroller, in respect of the ship or aircraft, its cargo and passengers -

(a) in the case of a ship -

(i) arriving from Reunion Island, not later than 5 hours before arrival; or

(ii) arriving from any other port, not later than 24 hours before arrival;

(b) in the case of an aircraft -

(i) arriving from Reunion Island, upon arrival; or

(ii) arriving from any other airport, not later than one hour before arrival.

(e) in section 127A(2), by deleting the words “20,000 rupees” and replacing them by the words “200,000 rupees”;

(f) in section 158 -

(i) in subsection (1) -

(A) in paragraph (c), by deleting the word “or” appearing at the end;

(B) by deleting paragraph (d) and replacing it by the following paragraphs -

(d) smuggles out of Mauritius any goods or exports any prohibited or restricted goods; or

(e) unlawfully removes any goods from, or who cannot satisfactorily account for goods in, a bonded warehouse or duty free shop,

(ii) by adding immediately after subsection (4), the following new subsection -

(5) (a) For the avoidance of doubt and notwithstanding any other provision of this Act, the expression “Every person” in subsection (3) shall be construed as including an agent or a broker acting as such on behalf of an importer or exporter.

(b) Where an agent or a broker is prosecuted for an offence under subsection (3), he shall, on conviction, be liable to a fine not exceeding 200,000 rupees.

6. The Customs Tariff Act amended

The Customs Tariff Act is amended in section 5, by inserting immediately after subsection (3), the following new subsection -

(3A) Where the National Transport Authority revokes the licence of a
taxi-owner driver who has benefited from an exemption or remission of duty and excise duty in respect of his motorcar within a period of 4 years of its importation, in circumstances which would render the taxi-owner driver not eligible to the exemption or remission, he shall pay the duty and excise duty which would have been payable but for the exemption or remission.

7. The Excise Act amended

The Excise Act is amended -

(a) in section 2 -

(i) in the definition of “bottling premises”, by deleting the words “alcoholic products” and replacing them by the words “liquor and alcoholic products”;

(ii) by deleting the definitions of “alcoholic beverage”, “cider”, “compounded spirits”, “country liquor”, “liquor”, “local rum”, “rum” and “wine”;

(iii) by inserting in their appropriate alphabetical order, the following definitions -

“agricultural rum” means a product obtained exclusively from alcoholic fermentation and distillation of sugar cane juice, having the aromatic characteristics specific to rum and a content of volatile substances equal to or exceeding 225 grams per hectolitre of alcohol of 100 per cent by volume and when bottled for consumption has a minimum alcoholic strength of 37 per cent by volume and a maximum of 50 per cent by volume;

“alcoholic beverage” means a beverage having an alcoholic strength of not more than 9 per cent of alcohol by volume but does not include beer and spirit cooler;

“alcoholic products” means agricultural rum, compounded spirits, island recipe rum, local rum and rum;

“cider” means an alcoholic beverage made from the fermentation of apples or concentrated apple juice;

“compounded spirits” means rum, local rum or agricultural rum compounded into a product of a different flavour, taste or colour and having an alcoholic strength of not less than 37 per cent and not more than 50 per cent of alcohol by volume;

“country liquor” means a product having an alcoholic strength of not less than 9 per cent and not more than 15 per cent of alcohol by volume obtained from the fermentation of sugar or of any plant, fruit or fruit must other than grape must, fresh grapes or sound grapes;

“island recipe rum” means a product having an alcoholic strength of not less than 30 per cent and not more than 40 per cent of alcohol by volume and obtained by mixing agricultural rum, rum or local rum with fruits, sugar, spices with or without flavouring substances;

“liquor” -

(a) means any beverage having an alcoholic strength of not less than 2 per cent of alcohol by volume; but

(b) does not include alcoholic products;

“local rum” means a product having an alcoholic strength of not less than 37 per cent and not more than 50 per cent of alcohol by volume obtained by diluting alcohol produced from the fermentation and distillation of sugar cane or its derivatives;