the prevailing rate of inflation.
(No. B/1049) Mr R. Etwareea (Third Member for Grand’ Baie & Poudre d'Or) asked the Prime Minister, Minister of Defence, Home Affairs and External Communications, Minister of Finance, Minister for Rodrigues and Outer Islands, whether he will state the evolution of the disposable income available to the average middle-class Mauritian family during the year 2025 having regard to the prevailing rate of inflation.
Reply: Since coming into office in November 2024, Government has taken a number of measures to increase the purchasing power of the population. These include – (a) the payment of a 14th month bonus and the 2025 salary compensation to employees earning a basic monthly salary of up to Rs 50,000; (b) the reduction in the price of diesel and mogas (l’essence) by Rs5 per litre in December 2024; (c) a further reduction in the price of mogas (l’essence) by Rs2.75 per litre in November 2025; (d) the imposition of price controls and markup limits on key consumer goods; (e) the removal of VAT on a range of basic items such as frozen and canned vegetables, infant nutrition, and baby food; (f) the setting up of a Price Stabilisation Fund of Rs10 billion for the next 5 years with an initial contribution of Rs2 billion this year, leading to the reduction in the prices of five essential commodities, namely milk powder, processed cheese, infant milk, baby diapers, and edible oil; (g) the abolition of registration duty applicable on the sale and transfer of domestic pre-owned vehicles, and (h) the increase in the monthly tax exemption threshold for employees from Rs390,000 to Rs500,000. Around 81% of employees are now exempt from income tax. Some 75,000 individuals earning between Rs500,000 and Rs1 million are benefiting from reduced tax liabilities. As a result of these measures, many households experienced an increase in their monthly disposable income in 2025 surpassing the inflation rate, which remains within the Bank of Mauritius’s target range. NATIONAL HUMAN RIGHTS COMMISSION – COMPOSITION & MEMBERS’ SELECTION PROCESS
148