Mauritius Introduces 2% Climate Levy on Company Profits to Combat Climate Change
Mauritius, an island nation in the Indian Ocean, is facing challenges such as flash floods and erosion due to climate change. In response, the country is planning to implement a 2% climate levy on company profits to fund projects aimed at addressing climate change issues. Finance Minister Renganaden Padayachy announced this initiative during a budget presentation in the capital city of Port Louis.
The revenue generated from this levy will be used to support national efforts to protect and restore Mauritius’ natural ecosystem, as well as to combat the impacts of climate change. Companies with sales below 50 million rupees will be exempt from this levy.
Mauritius, with a population of 1.26 million people, is increasingly experiencing climate change-related events and aims to raise 300 billion rupees to achieve its adaptation and mitigation goals. Recent flash floods in the capital city disrupted daily life and highlighted the urgency of addressing climate change in the country.
Tourism plays a significant role in Mauritius’ economy, with an expected revenue of over $2 billion from visitors this year. However, the country is facing challenges such as coastal erosion, with more than 37 kilometers of coastline being affected.
Finance Minister Padayachy emphasized the importance of protecting Mauritius’ natural environment, stating that action is needed to prevent the destruction of pristine beaches, coral reefs, lagoons, and forests. The government plans to allocate 3.2 billion rupees from the new climate fund to rehabilitate 26 kilometers of shoreline and address 30 degraded sites.
This initiative reflects Mauritius’ commitment to addressing climate change and safeguarding its natural heritage for future generations.