At MEXA, we always strive to do things that have never been done before, walking the extra mile to be at the forefront of innovation and provide our fellow exporters with the best possible support. You will find below a series of firsts and achievements we really take pride in.
A. BUDGETARY MEASURES
- First of all, the Speed to Market Scheme that allows for a 40% reduction in air freight cost to Europe, has been extended to other key export sectors other than Textile & Apparel such as, leather products, Jewellery & Watches, Medical Devices, Chilled Fish, and Vegetables and Fruits.
- Second, the Corporate Tax Scheme whereby profits from exports of goods will be taxed at the lower rate of 3 per cent, instead of 15 per cent. The main aim of this measure is to encourage emerging export-oriented enterprises to further develop their export capacity, That is, the more a company export, the less corporate tax it will pay.
- Third, the Exchange Rate Support Scheme has been put in place to provide temporary support to exporters who were facing the impact of the sharp depreciation of the US dollar which fell to a low of Rs 32 per dollar in August 2017. The support to EOEs will be equal to the difference between the reference rate of 1USD = Rs 34.50 and the rate at which the EOE has exchanged proceeds of its exports invoiced in US dollars, subject to a maximum of Rs 2.50 per US dollar.
B. MINIMUM WAGE
MEXA has relentlessly defended the interest of the export sector throughout the 9 months which consisted of long and intense discussion on the introduction of the National Minimum Wage, which came into force in January 2018.
The export sector was among the few economic sectors of the country, which has the lowest basic wage. To keep up the competitiveness of the sector and ensure its survival, it was a prerequisite to maintain the basic wage of the export sector.
MEXA is pleased with the achievements in the negotiations on the National Minimum Wage:
- (i) The National Minimum Wage of Rs 8,140 includes the following elements for the export sector, namely:
- • Food and Housing allowance, capped to the amount of Rs 2,500
- • Fixed pay components (within 45 hours)
- (ii) Calculation of Overtime, piece rate and attendance bonus will be based on the prescribed wage as per the EPZ Remuneration Order.
C. OTHERS
Ban on exports to Madagascar: Since August 2016, the Malagasy authorities had imposed a ban on the imports of all agro-based products from Mauritius following the incursion of the Foot and Mouth disease. MEXA had lobbied intensively for one year with all parties concerned and finally in September 2017, the Malagasy authorities have agreed to remove the ban.
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