Budget speech!

Hon Finance minister Dr Rama Sithanen delivered his transition speech on Friday 22nd May 2009.  The main points are:

1. excise duty of MUR 1.00 on aluminium cans and PET bottle for soft and alcoholic drinks;

2.  all profitable companies are to allocate 2% of their profits on CSR activitie;

3. new solidarity levy on fixed and mobile telephony companies set at 5% of profits and 1.5% of turnover for the next 2 financial years;

4. the solidarity levy on profitable banks increase to 1% of turnover and 3.4% of profits for the next 2 financial years;

5. reduction of ministers’ salary by MUR 10,000 as from July 2009, and control and reduction of trips overseas;

6. increase of 5.1% of old aged pensions;

7. injection of MUR 3.5 bn to support SMEs in the face of economic crisis and to save jobs.

8. construction of a university campus worth MUR 600m;

9. no increase nor decrease in VAT rate;

10. incentives to renovate hotels and reduction of taxes for construction companies;

11. construction of harbour bridge as well as other infrastructures to relieve congestion;

12. as regards to IRS/RES promoters, land transfer tax of 25% payable at the time of signature of contract. The remaining balance to be payable in 3 equal instalments over a period of 18 months.

Further info on the budget speech can be found here.

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