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After posting ‘meteoric profits’, Mauritius conglomerates told to ‘pay back’ bail out

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After posting 'meteoric profits', Mauritius conglomerates told to 'pay back' bail out

Leftist party Rezistans ek Alternativ has told local corporates that “Pay Back” time has arrived because a “serious tax injustice is hitting the country’s employees”.

“This tax injustice is getting worse in the country. Corporates, that benefit from public funds, are paying less and less tax. The people are paying a large share of taxes “, spokesperson Ashok Subron told Le Mauricien newspaper.

Referring to indirect taxes, i.e. VAT and Excise Duty, Subron said each Mauritian family paid an average of Rs 13,262 monthly in 2022.

“If we take into account the average income of a household (Rs 32,0000, this means that each Mauritian family is paying about 40 to 41% of its monthly income through these two indirect taxes. The funds collected through this tax injustice have been used to subsidise Corporates on a massive scale.”

The spokesperson for Rezistans ek Alternativ said that “the Payback Time” for these corporates has now arrived. “A timetable must be established to get them return the people’s money in the spirit of social justice.”

He said then people are increasingly shocked by the “meteoric profits” made by some of the big companies, including IBL, Sun, Rogers and MCB.

“Big companies have benefited enormously from subsidies from public funds derived from the tax paid by the people. Public funds have been largely used to bail out big companies through rescue packages,” he said, listing a series of figures, including Rs 23 billion from the Consolidated Fund and other amounts under the Mauritius Investment Fund.

The second reason is that “up to the year 2021, the fund has transferred more than Rs 24 billion to a bunch of corporates, some of which are reporting super profits today.”

“We also have to account for investments in bonds at Rs 15 billion, MIC Smart City (Rs 3.4 billion), Airports Holdings (Rs 25 billion), Medine (Rs 1.9 billion), among others. It is the reserve fund of the Bank of Mauritius that has been used to lease out the companies.”

Source: Le Mauricien

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The information and opinions expressed in our published works are those of authors/sources believed to be reliable. NewsMoris makes no representations as to accuracy, completeness, suitability, or validity of any information expressed.