Amidst the rise in cost of living, economic crisis and the impending food crisis, this year's budget exercise was followed by Mauritians and expats alike with great anticipation. The government, indeed, came forward with measures which could help alleviate the financial burden for Mauritians and incentives to encourage local production of food. Allocations for employees and self-employed earning less than Rs 50, 000 a month, at least Rs 1,000 rise in the old-age pension and a series of grants and subsidies to help families that need it the most were announced. On the food security front, the authorities will be using a series of financial incentives to boost fruit and vegetable production, livestock breeding, honey, tea and sugarcane production amongst others.
Sustainable energy
An important part of the budget was dedicated to shifting to renewable sources of energy. Grants and incentives will be provided to anyone wishing to produce electricity from solar power, for example. Most importantly, electric and hybrid cars will now be duty-free.
Visas
Although there is no information on the logistics of this, the Premier visa will also be opened to students just completing their studies and entrepreneurs and businesses will be encouraged to recruit foreign talent under the Young Professional Occupation Permit.
As for new residents, they will be allowed, upon application, to opt to buy a property of a minimum of $350 000 if a 10% contribution is made to the Solidarity Fund.
Business
To encourage foreign investment as well as the creation of local businesses, the registering of companies will now be free of charge and the maximum time for a bank account to be opened will be a week. Businesses will be encouraged to recruit foreign talent under the young professional occupation permit.
Furthermore, the government also wants to boost the development of the Small and Medium enterprise sector with grants, interest-free loans and other financial incentives. The SME Act will also be amended so that more enterprises are able to benefit from these.
Mauritian Financial Center
After the exclusion of Mauritius from the FATF and EU Black lists, it is important for the Mauritian government to further strengthen this sector. As such, a domestic minimum top-up tax is being introduced to ensure resident companies of large multinationals are taxed at a minimum of 15%, training in Anti-Money Laundering is being offered to graduates and a Financial Crime Commission will be set up.
Also, more young professionals of the sector will be trained in Anti-Money Laundering practices.
