. /.  WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/MUS 
G/SCM/N/226/MUS 26 September 2011 
 
(11-4606) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures 
 
Continuation of Extension under SCM Artic le 27.4 of the Transition Period for 
the Elimination of Export Subsidies Pursuant to the Procedures Contained 
in the General Council Decision in Document WT/L/691 
 
MAURITIUS 
 
 
 The following notification, dated 22 September 2011 , is being circulated at the request of the 
Delegation of Mauritius. 
 
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1. Title of the Subsidy Programme 
 
 The Freeport Scheme 
 
 Description of the scheme  Corporate Tax Exemption 
 2. Period covered by the notification 
  June 2010 - June 2011  3. Policy Objectives 
  To encourage trading companies to use the Mauritius Freeport as a logistics and marketing 
platform for the re-exportation of their goods to Eastern and Southern Africa.  
 4. (a) Background authority for the Scheme 
  The Board of Investment a nd the Income Tax Department 
 
 (b) Legal Basis 
  Income Tax Act 1995 as amended by the Fi nance (Miscellaneous provisions) Act 2010  
 G/SCM/N/220/MUS 
G/SCM/N/226/MUS Page 2 
 
 
  5. Form of Subsidy 
 
 Corporate tax exemption on income derived fro m activities carried out in the Freeport zone 
except for Freeport operators and private Freeport de velopers licensed after 1 June 2002 to carry out 
any specified Freeport processing activities. 
 6. Beneficiaries 
  Freeport operators and private Freeport devel opers which are engaged in processing (licensed 
on or before 1 June 2002) and those engaged in light assembly , ship building, repairs and 
maintenance.  7. Subsidy per unit or Total Amount 
 
 The Government suffers no effective loss of  income due to foregone taxes since these 
activities would not have taken place in Mauritius wit hout the existence of the Freeport and its related 
incentives.  8. Duration of the Subsidy 
 
 The scheme is not limited in time. 
 9. Assessment of trade effects 
  This incentive has contributed to the development of the Mauritius Freeport. 
 
10. Additional information as per Ge neral Council Decision para. 2 (a) 
 
 It will be recalled that the Government of Maur itius reported in its notifi cation of 2010 of its 
intention to initiate internal steps for the eventu al removal of this programme as from 30 June 2011. 
In this respect, and in good faith, it was reported that the relevant authorities had already made 
provision under Section 8 8(b) (i) of the Additi onal Stimulus Package (Mi scellaneous Provisions) Act 
2009 for the eventual removal of this programme as from 30 June 2011. The beneficiaries of the programme were made aware that the programme w ould end as of that date since the Additional 
Stimulus Package (Miscellaneous Provisions) Act was gazetted on 16 April 2009. However, in view 
of the 2010 world economic outlook and the econo mic situation in Mauritius, the Government 
reserved the right to review this decision in 2011. 
  The decision to extend the income tax ex emption was announced in the Budget Speech 2011 
as a result of the persistence of the euro-zone crisis  – an external shock which has a menacing impact 
on our economy, especially on our export sectors.  
 As stated in the Budget Speech 2011, the Free port is an important link to the regional and 
international economy and to embrace the role as a regional trading hub the Government has decided 
to postpone by two years the return to the normal tax rate for the private Freeport developers and Freeport operators operating in the Freeport zone. 
 
 
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