Mauritius will introduce a digital services tax starting in January 2026, despite threats from the US to impose tariffs and restrict exports when its tech sector is impacted by such measures.

Paul Baker, Chairman of International Economics Consulting Group and the Africa Trade Foundation, warns that this move could lead to US retaliation, which may appear by the US Administration to be discriminatory against American companies. He explains that while Mauritius has the sovereign right to impose the tax, and that the tax is non-discriminatory, the timing and potential consequences make it a risky decision.

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