Mauritius is to scrap or substantially lower duties on 1,850 products, including leather goods, in an effort to create a duty-free destination for tourists visiting the Indian Ocean Island, Finance Minister Pravind Jugnauth announced.
As part of his budget speech he said: "It is a decision that will harness the full potential of Mauritius, a decision that will open new economic space and encourage entrepreneurship, a decision that will generate massive investment across the entire economy." He also said that the private sector is set to invest an estimated 45 billion rupees in tourism, which is one of the main pillars of the economy, over the next five years.
Mauritius recorded economic growth of 4.2% last year against 4.4% in 2003 while growth is forecast to accelerate to 5.1% in 2005. However, total expenditure for 2005/6 is expected to increase to 48.1 billion rupees from 45.3 billion in the previous year. Heavy investment in education and infrastructure in the past have resulted in a budget deficit the World Bank has termed as high and unsustainable.
The Mauritian economy is continuing to face major challenges, with its key sugar and textile industries threatened by new global trade liberalisation rules. Both sectors are shedding thousands of jobs to restructure and improve competitiveness.
