[Blog] Aide aux secteurs formel et informel : lettre ouverte au ministre des Finances et au Secrétaire financier

Comment soutenir les PME dans les secteurs formel et informel en cette période de confinement total dû au Covid-19 ? Ces PME compte une liste de presque 900 familles en détresse qui ne sont pas dans la liste de 'social register'.

27th March 2020

Honourable Renganaden Padayachy, Minister of Finance

Mr Dev Manraj, Financial Secretary

MINISTRY OF FINANCE, ECONOMIC PLANNING AND DEVELOPMENT

Government House

Port-Louis

Object: Informal Sector – Employers & Employees

Dear Sirs,

Following Covid-19 outbreak, MOFED proposals to support registered enterprises and employees via the Mauritius Revenue Authority (MRA) are most welcome and appreciated.
We all know, the informal sector and the formal SME sectors are really of great concern. I am sure you are aware of the high risk of bankruptcy in these sectors representing some 125,000 companies and more than 375,000 employees.

https://www.rtl.fr/…/coronavirus-le-risque-d-une-faillite-e…
https://www.francetvinfo.fr/…/coronavirus-les-pme-en-danger…

However, food distribution to all families is priority 1 and is most urgent to avoid social issues. Government should immediately organise essential food/vegetables distribution and sales via ‘boutiques de quartier’ and controlled by MPF.

A special note for families in the informal sector who have no revenues and who are not on the social register. Government should ensure with immediate effect that these families who are now in a very vulnerable situation, the informal self-employed, receive essential necessities and food via home delivery by government bodies without any charge.

I hereby attach a list of almost 900 families who contacted us requesting immediate support from government.

100% CITOYENS recommendations to government

1. Government to declare ‘Force Majeure’ to protect every Mauritian on loans repayments, rentals, lease, etc… protecting assets. This measure will automatically freeze all payments due to leasing and all loans to banks and all financial institutions for 3 months.

2. Provide a 3 months financial assistance of 75% of employee salaries for all SME employees. Previous Tax returns could provide necessary datas at the MRA.

3. Wage support scheme should also be for the most vulnerable and not for companies/sectors who already enjoy support from public money. An analysis of past three years financial statements should be made prior to disbursement of funds. Example: if a company enjoyed sufficient profits over past years, disbursed high dividends or has sufficient reserves in their holding, should they be supported by public funds?

4. Apply immediate price control on extended consumer goods.

5. Late payments to SMEs should be tackled with immediate effect. For guidance government could inspire itself on EU Late Payment Directive (2011/7/EU). Late payments create undue bank profits whilst for many SMEs, go into bankruptcy. Public bodies including parastatals are earmarked to be best actual bad payers, followed by the Tourism industry, the Manufacturing sector and hypermarkets,
https://ec.europa.eu/growth/smes/support/late-payment_en

Revenues:

1. Increase corporate tax for all companies enjoying more than Rs 100 Million annual profit to 25% (instead of 15%). National solidarity is now a matter of urgency. Holding companies should be monitored.

2. Freeze Metro-Express Phase 2 project (expenses of Rs 9 Billion differed) to focus on the country priorities. I am sure the Prime Minister of India, Narendra Modi, will understand and give his full support.

3. All allocations and salaries of MPs, ministers, advisers should be decreased by 25%. Retired politicians should receive only one pension. Pensions using tax-payers money, should not be cumulative.

4. Salaries and allocations for all political nominees should be decreased by 50%.

5. An immediate ‘Transformation of the Public Sector’ should induce huge savings in the short-medium-long term.

6. Introduce a ‘Land Tax’ for very large owners and properties. Example: Rs 50M value /IRS villas …

7. Use only when necessary, funds from other several public saving funds. (Garder une poire pour la soif).

What next?

Is it not high time to review our Economic model and move away from the Neo-Liberal economic system, where government always support the bankers and large groups. Let’s learn about the 2008 pre-and-post crisis.

The theory of trickle-down-economics is now a model of the past and is obsolete. 
https://www.ineteconomics.org/…/pope-francis-joins-joe-stig…

We suggest an immediate ‘Post-Corona’ Thinktank engaging the civil society (all actors including NGOs, associations, all political parties (not only mainstreams)) for a re-Think of a real ‘Inclusive Economic model’ and move quickly to an ‘Economie Solidaire’ model.
https://business.financialpost.com/…/opinion-pope-francis-s…

In total transparency,
Sincerely yours,
Dev Sunnasy
100% CITOYENS