The priority of Budget 2021/2022 is to support the Mauritian economy amid the COVID-19 pandemic, which is an unprecedented situation that has never been witnessed. The Small and Medium Enterprises (SMEs) represent one in two jobs in the country and have been severely affected by the pandemic. In this context, the Finance Minister, Dr Renganaden Padayachy, announced, this evening, in his budget speech 2021/2022 at the National Assembly, measures that will be implemented to support SMEs as they ride out the current crisis and so that they can embrace the future with confidence.
The key measures include:
SMEs
- Setting up of a Rs 5 billion Modernisation and Transformation Fund which will be managed by a new Industrial Financial Institution
- Reduction of the annual interest rate for the existing Leasing Equipment Modernisation Scheme from 3.9 percent to 2.9 percent for companies with turnover up to Rs 50 million, from 4.25 percent to 3.25 percent for companies with turnover between Rs 50 million and Rs 250 million and, from 4.75 percent to 3.75 percent for companies with turnover above Rs 250 million
- Extension of the Credit Guarantee Scheme for SMEs to cover 5 percent of the default amount on leases contracted from private leasing companies
- Increase of the maximum investment through licensed crowd lending platforms by the IFI from Rs 200,000 to Rs 1 million per project
- The Government will sustain the payment of wages through the financing of the salary compensation of Rs 375 monthly for fiscal year 2021/22
- Extension of the exemption on trade fees not exceeding Rs 5,000 for an additional 5 years
- Extension of the Tax Arrears Settlement Scheme for SMEs up to December 2021
- Increase of the total maximum grant across all schemes implemented by SME Mauritius Ltd from Rs 150,000 to Rs 200,000
- A 110 percent deduction will be allowed on the taxable income for the direct expenditure incurred on the purchase of products manufactured locally by SMEs to encourage large manufacturers to procure from SMEs
- SMEs will also be eligible to the following loan schemes from the DBM: (a) Rs 100,000 interest free loan for cashflow issues; and (b) A 0.5 percent COVID-19 Special Support Scheme of up to Rs 1 million.
- The DBM will earmark an amount of Rs 1 billion to provide loan facilities of up to Rs 5 million to retailers with turnover of up to Rs 250 million at a concessional rate of 3.5 percent per annum to SMEs and Mid-Market Enterprises that have been impacted by the current crisis.
