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Economic machinery set to take off as Mauritius enters reconstruction phase, says Finance Minister

Date: May 14, 2020
Domain:Economy & Finance; Health; Judiciary
Persona: Business; Citizen; Government; Non-Citizen
 

GIS  – 14 May, 2020: The economic machinery is set to take off once again as Mauritius enters the second phase, that of reconstruction, and prepares to lift the lockdown on 1st June 2020. Hence, the importance of the COVID-19 (Miscellaneous Provisions) Bill in initiating a gradual, robust and coordinated resumption of activities.

 

The Minister of Finance, Economic Planning and Development, Dr Renganaden Padayachy, made this observation, today, at the National Assembly, in Port Louis, during his speech on the COVID-19 (Miscellaneous Provisions) Bill.


The Bill, he indicated, has been designed based on a logic of redistribution and innovation. “At a time when this health crisis has shaken many of our convictions, we need to rethink our model and accelerate the transition that started almost five years ago, and with the COVID-19 (Miscellaneous Provisions) Bill, we are giving ourselves the means to achieve our goals,” he emphasised.

 

.  Strategic investments, social justice and flexibility will be the credos of the country’s economy post-Covid-19, he added.​

 

In terms of strategic investments, the Minister recalled that the Bill will introduce the possibility for the Board of Directors of the Bank of Mauritius (BoM) to invest, at its discretion and independently, in the Mauritian economy.  As it is, the BoM owns reserves equivalent over a twelve-month period and these reserves are currently invested on the international front. Accordingly, by amending the BoM Act, the reserves of the BoM will be used for the benefit of Mauritians, stressed the Minister.  The objective is, in the immediate future, to preserve the country’s economic and banking system in line with the BoM’s mandate, and, in the long term, to generate positive returns to increase national wealth for the benefit of the present and future generations.

 

For Dr Padayachy, in terms of social justice, the Bill is supporting the most vulnerable groups of Mauritius.  Only companies which are financially robust will be called upon, through the Covid-19 Levy, to contribute in this collective national effort.  Thus, only profitable companies that have benefited from the Wage Support Scheme will bring in their contribution. The Minister further recalled that the Scheme has helped around 260 000 employees while the Self-Employed Assistance Scheme has relieved more than 180 000 self-employed and informal workers.

 

Regarding the proposed revision to the Income Tax Act, the Finance Minister remarked that this will allow the Covid-19 Solidarity Fund contributors to deduct the amounts from their tax base.  In addition, Government is being flexible towards those who are experiencing great difficulties, he pointed out.  To that end, the Companies Act, the Foundations Act, the Mauritius Revenue Authority Act, the Insolvency Act and the Limited Liability Partnership Act will be amended, by extensions of deadlines or by revisions of thresholds, taking into account the current situation.

 

 

#ResOuLakaz     #BeSafeMoris

 Government Information Service, Prime Minister’s Office, Level 6, New Government Centre, Port Louis, Mauritius. Email: gis@govmu.org  Website: http://gis.govmu.org  Mobile App: Search Gov

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