A raft of new corporate taxes that could erode banks' profitability is testing Mauritius's long-standing status as a low-tax gateway for cross-border capital, according to Moody's Ratings.

The Indian Ocean island nation has built its financial services sector on competitive tax rates and a network of treaties that channel investment into Africa and Asia. Recent fiscal measures, including a corporate climate responsibility levy and changes to the global business license regime, risk narrowing net interest margins and increasing operating costs for lenders.

Moody's warns that the cumulative impact of these taxes may weaken the sector's earnings generation capacity. While banks maintain strong capital buffers, sustained pressure on profitability could affect their ability to support credit growth. The rating agency notes that the jurisdiction's attractiveness as an international financial center depends on policy predictability.