To answer this question, the reporter Dinesh Siharry invited on the set of "Grand Journal" Suttyhadeo Tengur, president of the Association for Consumer Protection, Eric Mangar, head of the Movement for food self-sufficiency and economist Yusuf Ismail.
> According your opinion, household trash?
Suttyhadeo Tengur: A study of the evolution of the price index and the inflation rate over the past five years show that the workers were not adequately compensated for the loss of purchasing power. They always pay any compensation received by the rate of inflation.
This year, they should have been Rs 1200 as wage compensation. This is a figure that includes the shortfall in recent years, inflation and interest as if the worker had never deposited money in this bank. It does not happen a month in which commodity prices have not increased. It is no secret that the consumer has suffered, on average, an increase of 7 to 8% on purchases each month.
I hope that through his next Budget, the Finance Minister to take steps to relieve the population. I think it has enough flexibility to do so, because its predecessors have adopted a policy of austerity has brought a lot of money into the coffers of the State. I would like to draw attention to the fact that even today, the International Monetary Front is in favor of easing the tax system. I think with a good management of the economy and measures to curb waste could boost economic growth.
> What is the scope available to the Minister of Finance to relieve population?
Yusuf Ismail: It is a fact that prices have risen significantly over the past ten years. Where an impoverishment of the population, especially those at the bottom of the ladder. It is worth noting that the average wage in Mauritius is around Rs 8000. I think the government has some leeway to ease the population.
I hope he will take action during the next budget to eliminate waste in the public service. It should also review the tax relief for the middle class. And take measures to encourage the informal sector operators, which are profitable to enter the formal sector so that they also pay tax on income. It is also good to note that the report of the Pay Research Bureau (PRB) will be released this week, and it will increase spending in the Public Service.
> Do you think a VAT reduction is possible?
Yusuf Ismail: I do not think there will be a reduction in VAT, as this will lower government revenue. We know that 75 to 80% of government revenues from this tax.
> Such a decision yet relieve consumers ...
Yusuf Ismail: I think the solution is not a reduction in VAT, it must further educate consumers. Make several purchases that so-called "hidden costs". For example, a car that costs each month between Rs 3000 to Rs 4000 in terms of expenditure. We must empower consumers to buy intelligently. I also think that the government should take measures to control the frenzy of Mauritians for games.
> Do you agree with these opinions?
Suttyhadeo Tengur: In general, I think all Mauritians have a common opinion, especially in gambling. My observations stop there. I prefer to go to the issue of taxation. As I said at the beginning, even the IMF agrees that the measures that have been taken in the past are beginning to report results.
That said, it is desirable that the government take steps to alleviate the misery of the population. One of the first steps is a lower rate of VAT. As we know, this is a direct tax which varies proportionately with the purchase, that is to say, the more you buy, the more you pay. This is a tax that weighs heavy on the wallet Mauritians, but especially those at the bottom of the social ladder. So if you want to alleviate the suffering of the population, a reduction in VAT is desirable.
Eric Mangar: You must enter the root of the problem Mauritian observers. For example, if a person buys an imported product, it does not realize that it pays only 13% of the raw material, 42% of the utilities of the product and 45% for processing. It is to note that buying an imported product, we pay more for services than for the raw material. So, if produced locally, we will not have to pay for these excess costs ...