The Ministry of Finance has announced a set of measures to assist economic sectors which are being highly impacted by COVID 19.
The Government has provided the following measures for the Export and Manufacturing sector:
- Extension of the existing Trade Promotion and Marketing Scheme (TPMS), previously known as the STMS; i.e. 40% rebate of the Air Freight Costs to different destinations:
- South Africa
- Middle East Countries
- Extension of the Sea Freight Rebate Scheme to South Africa and Tamatave, i.e. refund of 25% of freight cost per export container up to a maximum of USD300 per container of 20 Feet”
- Port Charges at exports level will be suspended.
- Special Relief Programme by the Bank of Mauritius, amounting to Rs 5 Billion, at 2.5% rate of interest, for a moratorium period of 6 months.
- Introduction of Double Tax Deduction on Investment in Plant & Machinery.
- Work Permit for foreign workers ending December 2020 will be automatically renewed up to 31st December 2021.
In terms of Monetary Policy, on Monday 9th March 2020, the Bank of Mauritius decided to cut the repo rate by 50 basis points from 3.35% to 2.85%. We have recently also seen a favorable movement of the Mauritian Rupee which has depreciated vis a vis the US Dollar, Euro and Pound Sterling.