NEWS & MEDIA

Post-Budget Focus: Section 1 - Representation and collaboration  

 

A. Continued Representation

As stressed in BM’s memorandum, we welcome that isolated measures and/or implementation of schemes were not introduced prior to the proper ecosystem being put in place.

  • REVIEW OF OVERALL TAX SYSTEM INSTEAD OF TARGETED AND ISOLATED MEASURES
    • A holistic review of the tax system would include:
      • the integration of global business to the economy
      • the position of Mauritius as a jurisdiction of substance and an economic and business hub for investments between Europe, Asia and Africa.
    • This model should favour efficiency and certainty through a long-term fiscal framework.
    • In the meantime, the necessary amendments made regarding foreign sourced income are well noted and should be followed by an impact assessment exercise.

BM has volunteered to participate in the in-depth assessment of our taxation system in order to create a strong fiscal framework which would meet the country’s long-term objectives.

  • INTRODUCTION OF THE PORTABLE RETIREMENT GRATUITY FUND (PRGF)
    • The introduction of the PRGF has been made with the necessary space for technical discussions in order to ensure that its setting up should not impose additional financial burden which may affect the capacity to pay.

BM will participate in the technical committee towards the implementation of the fund in order to find a solution which is acceptable to all parties, addresses the practical concerns of implementing the measure and minimises unintended consequences as well as overlaps with existing mechanisms.  

  • CORRECTION OF ANOMALIES IN THE UNIVERSAL PENSION SCHEME
    • The intent to bring better standards of living to our seniors is being pursued without jeopardising fiscal stability.

BM’s proposal for a National Consultation on the sustainability of public and private pensions through social dialogue will be followed up with the relevant stakeholders, particularly in view of correcting anomalies in the universal pension system.

 

  1. Specific measures

Hereunder are some of the measures which could be of interest to our members:

  • Development of Human Capital
    • Facilitation of training is addressed, inter alia, through the setting up of a Skills Development Authority, the creation of a National Skills Matching Platform in collaboration with Business Mauritius and the streamlining of procedures for trainers, training institutions and non-award courses.
    • BM will continue working with the authorities to ensure that the necessary guidelines are implemented to facilitate the process for non-award courses.

 

  • Introduction of a “Post-Study Work Visa” will allow international students to work for 3 years in Mauritius in scarcity areas.

 

  • Reduction of training levy to 0.5% instead of 1% to those employees earning a salary not exceeding Rs 10,000 per month will provide some short-term relief to employers faced with the higher than expected salary compensation earlier this year.

 

  • Energy Transition
    • The constraint that a producer can produce from solar energy sources only 30 percent of the electricity it consumes is being lifted as is the monthly fee for supplying electricity from solar energy sources to the national grid. However, BM will continue its discussions with the Utilities Regulatory Authority with regards to ensuring commercially-viable renewable energy prices.

 

  • Environmental Vulnerability
    • Public-private collaboration for coastal rehabilitation and the lift of the ban on export of scrap metal (which allows value addition to the circular economy) are noteworthy.
    • A national cleanliness and embellishment campaign will also be a step in the right direction.

 

  • Innovation
    • New legislation to set up the Mauritius Research and Innovation Council and the setting up of a National Innovation and Research Fund will enable the acceleration of programmes such as the Collaborative Research and Innovation Grant Scheme and the Pole of Innovation Grant Scheme which are of practical use to businesses seeking to innovate production or processes.
    • Companies in innovation-box regime will benefit from 8-years tax holiday on IP income with 5 years for those in e-commerce and peer-to-peer.

 

  • Ease of Doing Business in Mauritius
    • Further actions have been announced to improve the Ease of Doing Business as well as a simplified PPP Act and the BOT Projects Act and the expectation of better port logistics through the planning of the Port Breakwater to reduce downtime.

 

  • Connectivity
    • A step in the right direction has been made, in the first instance to Kenya and Shanghai.

 

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