Africa-Press – Mauritius. Budget 2022/23 resonates with Government’s philosophy to put people at the forefront by providing equal opportunities through appropriate measures and cater to the needs of the population while accelerating economic recovery, stated the Prime Minister, Mr Pravind Kumar Jugnauth, today, in Port Louis.
He was speaking during a joint press conference with the Minister of Finance, Economic Planning and Development, Dr Renganaden Padayachy, following the presentation of Budget 2022/23 entitled With The People, For The People.
The Prime Minister reiterated Government’s determination to steer back the country on the path of recovery in spite of the difficult situation and economic setbacks due to the COVID-19 pandemic and external factors such as climatic challenges and unprecedented inflation which have been exacerbated by the Russia-Ukraine war.
The following budgetary measures were enumerated by the Prime Minister with a view to promoting the welfare of the population: Provision of Rs 1.4 billion for a subsidy to maintain retail price of “pain maison” at Rs 2.60;
Provision of Rs 2 billion to keep the price of a 12 kg cylinder of cooking gas at Rs 240 instead of Rs 680; Maintaining the price of rice at Rs 10.80 which is 60 percent lower than the actual price of Rs 26.20; Abolition of municipal tax on the family home as from 1st of July 2022;
Increase of all basic pensions by Rs 1 000 – The Basic Retirement Pension, the Basic Widow’s Pension, and the Basic Invalid Pension, will increase from Rs 9 000 to Rs 10 000 and individuals having reached 65 years + will earn a total monthly benefit of Rs 11 000;
350 000 individuals will obtain a monthly income allowance of Rs 1 000;
To increase the standard of living of middle-income earners, for those earning between Rs 25,000 to Rs 53,846 monthly, the income tax rate shall be at 10 %.
For those earning more than Rs 53,846 and up to Rs 75,000 monthly, the income tax rate is being reduced from 15 % to 12.5 %; With a view to accelerating the Land Transport Electric Vehicles Transition, as from 1st July 2022, all hybrid and electric vehicles will be duty-free;
Introduction of a negative excise duty scheme of 10 percent for the purchase of electric vehicles by individuals up to a maximum of Rs 200 000; Acquisition of 200 electric buses to renew half of the fleet of the National Transport Corporation;
Reduction on dependence on import of petroleum products, decarbonise the land transport system; Provision of a 0.5 % loan of up to Rs 3 million by Development Bank of Mauritius to taxis and van operators over a period of 7 years for the purchase of electric vehicles;
Increase in the benefits under Social Aid by at least 20 % as from 1st July 2022; Introduction of a monthly CSG Disability Allowance of Rs 2 500 to improve the lives of people suffering from a disability between 40 and 59 %;
Public contracts below Rs 20 million will be reserved for small contractors to improve the competitiveness of local construction companies and the SME Act will be amended to review the definition of SMEs;
Allocation of of Rs 3 billion for farmers, planters, breeders and fishers to achieve objectives of food security; Extension of Metro Express project; Provision of Rs 3.8 billion in the next fiscal year to continue the National Flood Management Programme;
Provision of a monthly “Prime à l’Emploi” of Rs 15 000 for the first year of employment of 10 000 youths between 18 and 35 years and women up to 50 years;
Rs 3.8 billion earmarked to continue the National Flood Management Programme; Provision of Rs 6.8 billion for Rodrigues and Outer Islands to preserve equal rights in the Republic.
For his part, Minister Padayachy dwelt on Government’s determination to drive the economic engine of the country and come up with significant measures to improve the quality of life of citizens and provide concrete solutions for enterprises.
As regards SMES, the Finance Minister indicated that the threshold for annual turnover has been increased from Rs 50 million to Rs 100 million thereby enabling some 142 000 enterprises to benefit from improved access to Government support programmes, and financing. The budgetary measure, he said, will enhance business facilitation, improve resilience and bring a new air of dynamism to the sector.
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