We reviewed the main measures announced in the National Budget 2022 - 2023 across some key sectors of the Mauritian economy. Click on the respective sectors to read more.
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Measures not meeting sector expectations
This year’s budget fell short of the expectations of the financial services sector, with no impactful measures for the sector.
The sector is in need of specialist resources and talents to bring it to the next level of diversification and specialisation and yet there are no measures to cater for this need, apart from the naming of the Financial Services Institute as the awarding body for specialists training in the sector.
For the Global Business sector, it would be interesting to see the impact of the amendment of the legislative framework to reduce the disparity between domestic and global business regimes and of the introduction of the domestic top-up tax.
Introduction of a domestic minimum top-up tax to resident companies of large multinationals to ensure that they are taxed at minimum of 15%
Adapting the legislative framework for the convergence of the domestic and global business regime.
To discover all the measures announced for the financial services sector as well as key performance indicators, download our full Budget Brief.
Meagre measures for one of the worst hit sectors of our economy
The sector has been supported in an unprecedented manner since the COVID-19 pandemic hit us. The return to profitability of some of the largest groups is perhaps the reason why less focus was placed on this important pillar of our economy?
A nice push on the sustainability of our destination where hopefully tourists will be able to enjoy clean roads and beaches, and travel in electric taxis. Decarbonising our economy is crucial in attracting the next generation of tourists!
The Rs400m MTPA budget is welcome but is still lower than pre-pandemic levels. In an increasingly competitive global landscape, this will probably not be enough to boost the sector.
Lastly the budget falls short on some pressing issues the sector is facing such as an increase of air access and labour shortages.
Let's hope we will find the answers in the much awaiting blueprint for the sector.
Rs1bn allocated for the rehabilitation of beaches, lagoons and coral reefs.
Marketing budget of Rs400m allocated to the MTPA
50% lease waiver extended up to June 2023
To discover all the measures announced for the Tourism sector as well as key performance indicators, download our full Budget Brief.
Food security, is it a realistic approach?
Successive governments have attempted to reduce our heavy reliance on food imports but with limited success. This Government itself issued a Strategic Plan towards Self-Sufficiency in 2016 and a number of the measures announced seem to derive from this blueprint. The Minister also added a flurry of new but timid incentives to promote food security.
We are wondering why these measures would succeed where other similar measures have failed? Are farmers and planters aware of the opportunities available to them? An awareness campaign could help. Credit criteria imposed on the commercial banks to support the planters could be less onerous. The road to self-sufficiency will also require the appropriate upskilling, and new entrepreneurs will need to be competitive vs imports. Regrettably, the measures don’t appear far-reaching enough.
On the other hand, the creation of a Construction Industry Training Council is most welcome to professionalise the sector and improve the skills of our construction workers.
Food Processing Units
Investment of Rs400m by the DBM for the setup of 2 food security clusters.
Residence Permit Holders
Can acquire a residential property of a minimum of USD350,000 outside the existing schemes, subject to a 10% contribution made to the Solidarity Fund.
Sale by Levy comprehensive reform
Includes the new condition that the mise à prix shall not be less than 90% of the value of the property.
Integrated Modern Agricultural Morcellement Scheme
8-year tax holiday, exemption from Registration Duty and from land conversion tax.
To discover all the measures announced for the agri-business and real estate sectors as well as key performance indicators, download our full Budget Brief.
Government acknowledges the present economic context and seeks to attend to social needs. Infrastructure continues to be a prominent feature with its impact largely visible. As regards to water supply, Government continues to invest to address citizens' demands. There is a special focus on Greening of the Public Sector and the Economy at large.
Through these measures, Government is attempting to nudge the Citizen to embrace sustainable living. As a caring Government, investment in the health sector is commendable in light of the ageing population. Measures in the Education Sector towards upgrading its infrastructure are welcome, but they present no clear policy on how to better leverage technology to revolutionise the sector.
Support provided to the police force, if implemented coupled with associated reforms, would largely address the safety of our People and visitors.
With the removal of the Urban Tax, Government has realigned the status of its localities. The forthcoming Municipal Elections may provide an opportunity to better understand the needs of the citizens and the financial implications for local authorities. Generally, measures announced are costly in nature; leaving aside how those will be financed, there remains a need for measures to enhance monitoring of public expenditure.
Through this budget, the Government has tried to extend a hand of support to its people. But its success rests on the conversion of the budget aspirations into reality for the citizens.
Green Transformation Package to increase our share of electricity supply from local renewable sources.
Investment of Rs1bn in water distribution projects.
Rs3.8bn earmarked to continue the National Flood Management Programme.
Rs2.5bn earmarked for modernizing the health infrastructure.
To discover all the measures announced for the public sector as well as key performance indicators, download our full Budget Brief.
This sector is so much more than the measures announced.
Last year’s Budget aimed at positioning Mauritius as a Digital Hub and similar forward thinking initiatives were expected this year. However, we note few initiatives being repackaged to pretend that momentum is being maintained - this year’s measures clearly fall short of expectations.
The Budget was expected to include initiatives which would modernise and digitize our country by facilitating and easing the life of our citizens.
At PwC, we believe that it lacks the strategic vision needed to guide Mauritius into the next Digital era.
The Government had the opportunity to not only improve the services towards the citizens but also work towards bridging the existing skill gap in the market, which could in turn help attract foreign investment and further boost the local ICT sector.
Inaction on previous measures, while conjuring up new ones will not lead to the advancement of the ICT sector in Mauritius. We would like to see definitive action being taken to not fall further behind in this era, and for e-Mauritius to not remain a eutopic goal.
Digital Upskilling & Fostering Innovation
The ability to use advanced technologies to create a culture of innovation.
Public Sector Digitisation
Developing a more digitally accessible public sector.
Digital Business Facilitation
Implementing digital platforms that will accelerate business processes
To discover all the measures announced for the Information and Communications Technology (ICT) sector as well as key performance indicators, download our full Budget Brief.
Will the measures in the budget be enough to boost the manufacturing sector
The sector has been struggling for years as the cost of production and labour increased and cheaper alternatives presented themselves to international merchants.
The budget met expectations on the logistics facilities to a large extent. This will provide the continued booster that operators are waiting for.
Not much incentives provided in terms of sustainability which is now an imperative from customers. Will they be able to invest and remain competitive?
There was no effort made on the Forex issues affecting the sector but the Made in Moris measures should help SMEs.
A Rs5bn Venture Capitalist fund from the MIC seems opportunistic and high risk for a government to handle and should be left to experienced bankers to manage.
We dream of a high-end manufacturing in Mauritius but when are we going to invest for this to become a reality?
Two regional feeder vessels
To facilitate exports to key routes
Freight Rebate Scheme
Extended to June 2023
Rs5bn venture capital fund set-up by MIC
To support SMEs
Rs5bn allocated by DBM
To support SMEs
Anthony Leung Shing, ACA, CTA
Country Senior Partner, PwC Mauritius
Tel: +230 404 5071
Jean-Pierre Young, ACA, CIA
Advisory Leader, PwC Mauritius
Tel: +230 404 5028
Olivier Rey, ACA
Partner, PwC Mauritius
Tel: +230 404 5145
Olivier Ma, ACA, CFA
Partner, PwC Mauritius
Tel: +230 404 5044
Partner, Business Recovery Services, Forensics and Financial Crime, PwC Mauritius
Tel: +230 404 5148
John Li How Cheong, ACCA
Partner, Head of Capital Markets and Accounting Advisory Services (CMAAS), PwC Mauritius
Tel: +230 404 5128