Mauritius National Budget 2012: Highlights - Board of Investment, Mauritius

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Mauritius National Budget 2012: Highlights

EDITORIAL

Dear Valued Investors,

Articulated around the concept of "Growth For The Greater Good", the 2012 Budget commissions the Board of Investment to offer "a unique experience for investors".

In this special edition of our newsletter we bring you the good news, namely the consolidation of our competitiveness through growth strategies and the abolition of a series of taxes, amongst others the removal of the solidarity tax on dividends and interest effective on 1st January 2012 and, with immediate effect, the cancellation of the capital gains tax on immovable property.

Business facilitation, a determining factor in the investment equation, has been given a special attention. In view of further increasing efficiency, a new system aiming at reducing the processing time for registering properties from 15 to 2 days is being introduced by next week.

INVESTMENT CLIMATE

The performance of Mauritius in several global indices such as the Mo Ibrahim Index of African Governance, the World Bank Doing Business Index as well as Fraser Institute's Economic Index Freedom positions Mauritius internationally and No 1 in Africa. Read More

FISCAL MEASURES

Tax Policy to boost Investment and Growth
1. Abolition of solidarity tax on dividends and interest.
2. Abolition of Capital gains tax on immovable property. Read More

SECTORAL ANALYSIS

Manufacturing

Budget 2012 Measures

A Sponsored Pre-job Training Initiative is introduced under the following conditions: The duration of training should not exceed 6 months, HRDC will pay 60 percent and the prospective employer 40 percent of the training costs, and A monthly stipend of 6,000 rupees per trainee will be paid on a 50:50 cost sharing basis.

Impacts

Capacity Building initiatives will mitigate the challenges caused by the shortage of skilled labour by: Increasing the participation rate of those not involved in the workforce; Increasing the value of work performed by those already in the labour market; Raising the skill level of those entering the workforce. It is expected that in 2012, some 8,000 unemployed will be covered by these schemes. Read More

Financial Services

Budget 2012 Measures

BOI is mandated to actively promote the export of financial services out of Mauritius as well as attract new financial players to invest locally. To this end, BOI will further consolidate its presence in key markets including the USA, Europe and India as well as leverage on new and upcoming ones including China, Africa and Middle East. We will adopt an aggressive marketing strategy to ensure increased visibility of the Mauritius International Financial Centre (MIFC) in these markets.Read More

Key Facts

Tourism & IRS/RES

Budget 2012 Measures

In line with stated aim in the budget of encouraging investment, government priorities in this budget for the hospitality and property development sector are laser-focused on: Fiscal Measure

Impacts

The abolition of the capital gains tax will: restore the image of Mauritius as a jurisdiction with a stable fiscal platform Read More

Key Facts

ICT/BPO

Budget 2012 Measures

The ICT/BPO industry is one of the promising sectors and the Budget has laid major emphasis on the development of this key pillar of the Mauritian economy.

Impacts

To address the shortfall in manpower in the sector, foreigners earning a monthly salary of Rs 30, 000 will be eligible for an Occupation permit Read More

Key Facts

Logistics and Distribution

Budget 2012 Measures

Tax holiday of Freeport operators which should end in 2013 will now be carried forward indefinitely.

Impacts

A zero per cent corporate tax as from 01 July 2013 will provide more certainty to Freeport operators and enhance Mauritius as a regional trade, marketing and distribution platform. This measure will definitely give a strong boost to the sector and help in further increasing cross border trade. Read More

Key Facts

Knowledge

Budget 2012 Measures

Procedures have been reviewed to speed up issue of student visas for foreign students. Foreign students will be allowed to take up employment on a part-time basis for up to 20 hours a week.

Impacts

Speeding up the procedures for granting of student visas and allowing students to work part time up to 20 hours will help to reinforce the image of Mauritius as an ideal destination for foreign students. This will result in a significant increase in the number of foreign students. Read More

Key Facts

Healthcare

Budget 2012 Measures

The VAT exemption on cosmetic surgery has been reintroduced to give a boost to medical tourism activities.

Impacts

The VAT exemption on cosmetic surgery will make the cost of elective procedures for medical tourism more competitive. Given that cosmetic procedures account for a significant share in flow of foreign patients, this measure is expected to significantly increase the number of foreign patients travelling to Mauritius.Read More

Key Facts

Renewable Energy

Budget 2012 Measures

A framework will be set up to enable production of ethanol for blending with gasoline.

318 MUR will be allocated to the MID initiative, consisting of 118 MUR for renewable energy, 100 MUR for solar water heaters and 100 MUR for the MID Fund.

Impacts

The above measures fit within the vision of Government of Mauritius in line with the MID initiative for sustainable development. Read More

Seafood

Budget 2012 Measures

Government will invest in cutting edge technologies to better harness the economic potential of our marine resources.

Impacts

The introduction of state-of-the-art technology and equipment will greatly optimize activities related to the fishing industry. Replenishment of the lagoon will increase the supply of fish in the market.Read More

Aviation Hub

Budget 2012 Measures

Position Mauritius as an aviation hub by increasing connectivity to African countries.

Air Mauritius is exploring the possibility to expand its network of partnerships with other airlines.

Impacts

The successful development of Mauritius as an air hub will entail the following: i) Improve connectivity to high growth economies in Africa and Asia. Read More

Creative Industries: Film Making

Budget 2012 Measures

As Mauritius emerges as one of the most diversified economies in the region, film production on the island would give additional dynamism to the local economy.

Impacts

The following benefits are expected from this new engine of economic growth: Facilitate better synergies, transfer of know-how and technology between local and international film makers. Read More

Agro-Industry

Budget 2012 Measures

Small planters and breeders will obtain full VAT refund on agricultural machinery, equipment and tools that they purchased in 2012.

The payment of an 80 percent advance to sugar planters as soon as their crops are sent to the mill will be maintained.

Impacts

The above measures will provide further boost to both the sugar and non-sugar agricultural sectors whereby VAT refund on agricultural machinery, equipment and tools will benefit some 23,000 sugar cane planters, some 6,000 horticultural producers and some 5,000 animal breeders, including cattle and pig breeders. Read More

Key Facts