memorandum on the 2019-2020 budget removal of import restriction on pork processing.....40 extension

Download MEMORANDUM ON THE 2019-2020 BUDGET Removal of Import Restriction on pork processing.....40 Extension

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  • MEMORANDUM ON THE

    2019-2020 BUDGET

    'UNLOCKING THE ECONOMIC FUTURE OF MAURITIUS’

    APRIL 2019

  • MCCI Budget Memorandum 2019-2020 2

    Table of Contents 1. EXECUTIVE SUMMARY ................................................................................................ 8

    2. THE ECONOMIC CONTEXT ......................................................................................... 13

    3. FISCAL POLICY ............................................................................................................. 15

    3.1. Corporate Income Tax ............................................................................................... 15

    Harmonised and competitive Corporate income tax .......................................... 15

    Extension of Investment Tax Credit to all productive industrial investment .... 16

    Review of the Innovation Box Regime to include existing companies ............. 17

    Addressing SME access to finance through Intrapreneurship ........................... 19

    3.2. Personal Income Taxation ......................................................................................... 20

    Redefinition of income tax exemption thresholds ............................................. 20

    Inclusive growth through improved Negative Income Tax Regime .................. 21

    Deduction of Employee contributions to Private Pension Schemes .................. 22

    Review of additional exemption in respect of dependent child for pursuing

    undergraduate courses ...................................................................................................... 23

    Extension of deduction for household employees to Creche & Babysitting

    Services 24

    Deduction on investment in Stock Exchange of Mauritius ............................... 24

    Tax Relief on donations to combat poverty under the ‘Gift Aid’ Concept ....... 25

    3.3. Rationalisation of non-direct taxes and levies........................................................... 26

    Harmonisation of VAT products from exempt to Zero-Rated ........................... 26

    VAT on Credit Card........................................................................................... 27

    Exclusion of 100% natural beverages from Excise Duty on Sugar Sweetened

    Beverages .......................................................................................................................... 27

    Review of Excise duties on plastic containers to exclude multi-use containers 28

    Abolition of Trade Fees ..................................................................................... 29

    License Fees - Registration fee for new company ............................................. 29

    4. INSTITUTIONAL REFORMS ........................................................................................ 30

    4.1. Economic Planning & Business Predictability ......................................................... 30

    Mauritius Recurring Economic Strategy 2020 -2025 ........................................ 30

    Mandatory Regulatory & Economic Impact Assessment .................................. 30

    Devising an Industrial Strategy for Mauritius 2020 – 2025 .............................. 31

    Mauritius Investment & Trade Policy Framework ............................................ 31

    4.2. Public Sector Rationalisation .................................................................................... 32

    Mauritius Food and Drugs Agency .................................................................... 32

  • MCCI Budget Memorandum 2019-2020 3

    Implementation of Single Licensing Agency .................................................... 33

    Strategic Industrial Renewal Council ................................................................ 34

    Operationalisation of the Utility Regulatory Authority ..................................... 34

    National Employment Agency ........................................................................... 34

    SME and Industrial Development Bank ............................................................ 35

    4.3. Ease of Doing Business ............................................................................................. 35

    Business Obstacles Alert Mechanism ................................................................ 35

    ‘Silent is Consent’ for business permits and licences ........................................ 37

    Incentivising Mediation and Arbitration to resolve Commercial Disputes ....... 38

    Extension of Omnibus Permits .......................................................................... 38

    Improving the Port Productivity ........................................................................ 39

    Review of Export Permits on scrap metals ........................................................ 39

    Removal of Import Restriction on pork processing ........................................... 40

    Extension of Grandfathering Provision for Customs Brokers ........................... 41

    Enabling private operators to access the Credit Information Bureau Register .. 41

    Implementation of the Mauritius Trade Link ................................................. 41

    5. FOUNDATIONS FOR MACRO-ECONOMIC TRANSFORMATION ......................... 42

    5.1. Strategic Public Infrastructure Development ............................................................ 42

    Implementation of New Airport Terminals to increase airport capacity ........... 42

    Implementation of the Port Breakwater to mitigate against disruptions ............ 42

    Implementation of the Passenger Cruise Terminal ............................................ 42

    Land Drainage Master-plan Strategic Implementation ...................................... 43

    Integration of Metro Express with other public mass transit systems ............... 43

    Public Infrastructure Fund – The Mauritius PIF ................................................ 43

    5.2. Enhancing Connectivity and Market Access ............................................................ 44

    National Export Strategy.................................................................................... 44

    Comprehensive Africa Strategy ......................................................................... 44

    Matching Grant Scheme to engage in international events on Export and

    Innovation ......................................................................................................................... 45

    Extension of Freight Rebate Scheme for direct exports to South Africa and

    Tamatave Ports ................................................................................................................. 45

    Extension of Speed to Market to all manufacturing sector and to African & U.S

    continent ........................................................................................................................... 46

    Trade and Marketing Strategy office in Kenya and Tanzania ........................... 46

    Implementation of a Regional Feeder Vessel including Rodrigues................... 47

  • MCCI Budget Memorandum 2019-2020 4

    Extension of the Export Credit Insurance Scheme ............................................ 47

    Export Factoring Scheme for enterprises in order to mitigate cashflow issues . 47

    Extension of 3 percent corporate tax on exports to Digital Goods ................ 48

    Air Connectivity ............................................................................................. 48

    5.3. R&D & Innovation and the Digital Economy ........................................................... 48

    Technology and Digitalisation Fund .................................................................. 49

    Operationalisation of the double deduction on R&D Expenditure .................... 49

    Implementation of the New Industrial Property Bill ......................................... 50

    Double tax deduction on the cost of registration of patent, trademark and

    product licensing overseas ................................................................................................ 50

    15 percent deduction on the acquisition/ technology transfer cost of IP Rights 50

    Enabling Patentability of Computer Software ................................................... 50

    Implementation of an Integrated E-Health Database ......................................... 51

    Incentivising Self Check-outs ............................................................................ 51

    Incentivising e-commerce and adoption of e-payment systems ........................ 51

    5.4. Demographics & Labour Market Strategies.............................................................. 52

    Career Guidance and Labour Statistics .............................................................. 52

    Increase the HRDC refund ceiling to 3 times the contribution .......................... 52

    Extension of HRDC to working professionals................................................... 52

    Accreditation of Online Courses by the MQA .................................................. 53