Mauritius Chamber of Commerce and Industry urges ongoing fiscal support

The Mauritius Chamber of Commerce and Industry (MCCI) recently urged the government to pursue its policy of economic reforms and to maintain the various fiscal support measures for industry, drawn up in the wake of the global financial and economic crisis.

Within the framework of 2012 pre-budgetary talks with Mauritian Minister for Trade and Industry Cader Sayed-Hossen, MCCI president Cédric de Spéville underlined the importance of continuing the policy of reforms to enable the country to overcome the current global economic downturn. Reforms and fiscal support measures implemented following the outbreak of the initial crisis in 2008 enabled the country to emerge relatively unscathed, Spéville emphasized.

While praising the government’s decision to open up the economy, Spéville nevertheless noted that, having made this choice, the country is now very dependent on events occurring on the foreign markets.

Determined to protect the country’s industrial sector from the negative effects of the global downturn, MCCI representatives called for all government support plans to be maintained, notably the various Leasing Equipment Modernization Schemes, introduced to assist small- and medium-sized companies in Mauritius by enhancing their competitiveness through the modernization of their production processes.

The MCCI also urged the government to amend certain anomalies in the country’s value-added tax (VAT) provisions, highlighting the fact that local producers are currently obliged to pay VAT on certain inputs, although are unable to deduct the costs from the final consumer price. In a bid to ensure that local products are not penalized or disadvantaged compared to imported products, the Chamber therefore recommended that the products concerned are zero-rated.

During the course of the discussions, the MCCI also urged the government to re-examine the framework of simplifying business in Mauritius, and to find ways for example of easing current procedures for obtaining permits. On the issue of monetary policy, the Chamber underlined the importance of a stable rupee, arguing that the appreciation of the currency in recent years has affected the country’s export industry. There is, the MCCI stated, scope for a lower interest rate.

The MCCI’s proposals will now be submitted to the Deputy Prime Minister and Finance Minister within the framework of preparations for the forthcoming 2012 budget, due to be presented on November 4.