Small & Medium Enterprises (SMEs)
Budget 2009 (Stimulus Package… 3)

No Euphoria please

SMEs occupy a seat of honour in the budget speech of the Minister of Finance. I note that he has committed himself to provide the necessary support and create a more conducive and business friendly environment for the SME sector to survive the present economic slowdown.

I welcome that the minister of finance has given consideration to proposals (some) made by the SME federation, but unfortunately it is not enough to address the need of the moment to be able to save SMEs and jobs.

I regret that the request to introduce a tax (at least temporarily) on imported products has not been retained by the Minister of Finance. I firmly believe that a specific tax on imported products is one immediate solution and would help to revive the current situation.

The difficulty for SMEs is not only a matter of finance but also the market. The policy of the ZERO rates of duty applicable on imported products has made that local manufacturer had lost a consequent share of the Mauritian market. What is the use of giving finance to SMEs if the more important issue is not addressed?

The outcome would have brought definite predictable beneficial results to the Mauritian economy and would have help the SMEs to be competitive enough to build on their manufacturing capabilities and create more jobs so as to satisfy an existing market in Mauritius to be in a position to develop the label of “MADE IN MAURITIUS” within the
Mauritian market help SMEs to be able to compete with imported ones on the same level in terms of costs and help in the redeployment of redundant employees of large factories.

I also note that no provision has been made for investment in infrastructure for SMEs (Industrial and Commercial space).

I note that implementation of measures announced by the Minister of Finance will be delivered by institutions like the NEF, NWEC, Ministry of Business and Enterprise Mauritius. What about the role of SEHDA? Is this a sign that the minister no more trusts this institution?

I recommend the Minister of Finance and the Prime Minister to make sure that all hurdles (some artificial) which has hindered to the implementation of incentives measures for SMEs in the past are removed and that all institutions responsible for their execution are provided with staff capable to deliver to the expectations of SMEs.

I prefer to remain cautious as past experience has shown that numerous measures announced in the national budgets were inaccessible to SMEs due to unaffordable conditions laid by the authority.

Michel A. MOOTHOOSAMY
(Ex President SME Federation)

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Budget 2009 - Point de vue de Kemp Chatteris Deloitte

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Condensé du budget 2009 par DCDM