In the wake of the 2023/2024 Budget presentation in Mauritius, the cost of alcoholic beverages has witnessed an increase, leading to a notable decline in sales.
Traders have just expressed their dissatisfaction with the higher license fees imposed upon them in addition to the elevated excise duties.
Under the new budget measures, the government decided to raise excise duties by 10%, impacting the pricing of alcoholic beverages across the board.
Wholesalers say they have been hit particularly hard, as their fees skyrocketed from Rs 6,000 to a staggering Rs 18,000. Similarly, retailers saw their costs double, escalating from Rs 6,000 to Rs 12,000.
This sharp rise in expenses has become a contentious issue for traders, especially during periods of low footfall, when businesses are already facing challenges. Many traders have voiced concerns about the additional financial burden they now have to bear, which could potentially impact their profitability and sustainability.
The repercussions of the budget announcement have not been confined to mere concerns, as some traders reported experiencing a decline in sales following the implementation of the new pricing structure. This has raised alarm among various trade organisations and advocates, who are calling for a reevaluation of the license system.
In response to the growing discontent, the Shop Owners Association and the Front des Commerçants de l’île Maurice are among the critics demanding a thorough reassessment of the permit fees and excise duties. They argue that such a move could help strike a balance between revenue generation for the government and maintaining a conducive environment for businesses to thrive.
The situation remains dynamic, and the government is likely to face mounting pressure from the trade community to address their concerns and find a mutually beneficial solution.
Source: Defi Media
