President Danny Faure chaired a special meeting of the Cabinet this afternoon at State House, which focused mainly on options for the reform of the taxation system, drawn up following extensive discussions which the Ministry of Finance had held with the private sector and other stakeholders.

Cabinet approved for a system of progressive income tax to come into operation from 1st January 2018.

Cabinet also decided that there should be exemption from tax on payments of compensation due upon termination of employment, as well as on payments of gratuity, bonuses and the 13th month salary.