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Skip to contentLIVE NEWS
The Association of Chartered Certified Accountants (ACCA), in collaboration with the Mauritius Institute of Professional Accountants (MIPA), organized, Monday June 10 in Ébène, a “Post-Budget Forum” following the presentation of the National Budget by the Minister of Finance, Renganaden Padayachy. The discussions mainly focused on key measures and gaps in the Grand Oral.
Pierre Dinan, economist: “Measures aimed at increasing local production should have been taken”
Before commenting on the budgetary measures, Pierre Dinan first shared some key figures and gave an overview of the Mauritian economy. The Gross Domestic Product (GDP), he said, will reach Rs 700 billion this year and Rs 800 billion next year. As for the investment rate, it is currently at 24%. “The public debt is estimated at Rs 460 billion at the end of June 2024 and the figure should rise to Rs 502.8 billion at the end of June 2025,” he pointed out. What concerns the economist is the current account which indicates that exports represent 49.8% and imports 53.2%. He explained that as a small open economy, it is obvious that our imports are higher.
“But it is high time to take corrective measures aimed at increasing our exports. This is how the country will be able to control inflation and attract more foreign exchange,” he maintained.
Pierre Dinan is of the opinion that the 2024-25 Budget should have provided measures to increase local production and increase exports. “We already have the human resources and marine resources. We have to use it effectively,” he said. Furthermore, he argued that the effort should not be made only at the government level, but also at the level of businesses and individuals. He finds it unfortunate that nothing was mentioned about the African strategy in the Budget. “We must not forget that Mauritius is part of the African continent just as England was part of the European Union. We now see how the country is going through difficulties with its exit,” he said.
Concerning the pension which was revised upwards, Pierre Dinan recalls that the International Monetary Fund had advised the Mauritian government to protect the most vulnerable. “This could have been done through targeting, but nothing was said at this level,” he insisted.
Dheerend Puholoo, Tax Leader at PWC Mauritius: “If the CCR Levy is applicable to Global Business, the consequences will be harmful”
Dheerend Puholoo accentuated his intervention on measures concerning taxes and taxation. One of the measures that attracts attention in the Budget, according to him, is the introduction of a Corporate Climate Responsibility (CCR) Levy, equivalent to 2% of company profits. Companies with a turnover of less than Rs 50 million will be exempt from this contribution. “We must first of all wait for the Finance Bill and possibly the Finance Act which will provide more details. It is still too early to know if this will be applicable to Global Business, but if this is the case, the consequences will be very negative for the industry,” he said. The latter argues that Global Business is already going through a difficult phase currently with regard to the taxation environment. “So, an additional 2% levy would be a new blow,” he explained.
According to him, taxation in Mauritius has undergone a lot of restructuring for some time. “I think Mauritius has done well so far in terms of taxation. But there is now a need to identify sectors which will be the next poles of the economy and to give tax incentives to these sectors,” estimates Dheerend Puholoo. He cited the technology sector in particular.
Furthermore, he believes that incentives should have been offered to companies looking for foreign workers. “Global Business in Mauritius needs foreign skills in order to face competition with other international financial centers,” he said. According to him, in order to create an ecosystem that facilitates business, it is important to offer tax advantages to companies.
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