. /.  WORLD TRADE  
ORGANIZATION  G/SCM/Q2/MUS/7 
G/SCM/Q3/MUS/12 7 October 2005 
 
(05-4549) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES  
 
Extension under SCM Article 27.4 of the Transition Period for the  
Elimination of Export Subsidies to the Procedures  
in document G/SCM/39  
 
Replies to Questions Posed by the UNITED STATES1 
Regarding the Notification of MAURITIUS2 
 
 
 The following communication, dated 7 October 2005, is being circulated at the request of the Delegation of Mauritius.  
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Export Enterprise Scheme
 
Pioneer Enterprise Scheme  
Export Promotion  
Freeport Scheme  
 
Q1. Mauritius’ notification indicates that th e duration of the incentives provided under each 
of these programmes exceeds the transition period  for the elimination of export subsidies 
provided for in document G/SCM/39.  Could Maur itius please describe the steps that are being 
taken to phase out these programmes?  Has Mauritius extended incentives under these 
programmes to new enterprises during the notification period? 
 
Reply  
  The Government of Mauritius has stated on a number of occasions that it will pursue the 
review of the existing tax incentives schemes, in cluding subsidy schemes.  Paragraph 64 of the 
President's Address to the National Assembly on 29 July 2005 setting out the Programme of 
Government states that " Government will put in place a tax expenditure framework for greater 
transparency in tax policy formulation and will simplify and rationalise investment tax incentives 
while ensuring they remain competitive ".  Moreover, in the Statement of the Deputy Prime Minister, 
Minister of Finance and Economic Development made  to the National Assembly on 30 August 2005, 
entitled "Setting the Stage for Robust Growth",  it was stated at paragraph 61 that " we are therefore 
conducting a review of the various schemes and of their le gislation and features so as to come up with 
a streamlined and simplified framework ". 
 
                                                     
 
1 G/SCM/Q2/MUS/6-G/SCM/Q3/MUS/11 
2 G/SCM/N/123/MUS-G/SCM/N/128/MUS G/SCM/Q2/MUS/7 
G/SCM/Q3/MUS/12 Page 2 
 
 
  It is in this context that a Committee of offi cials has been set up to continue the work on a 
comprehensive review of the investment incentiv e schemes including the Export Enterprise Scheme 
and the Freeport Scheme and the special tax incentiv es granted relating to corporate taxation, customs 
duty and internal taxes.  Particular attention is being paid to export subsidies subject to the SCM 
Agreement .  The time frame for their complete elim ination has not yet been officially determined but 
it will be compatible with decisions taken at WT O level and commitments taken by the Government 
of Mauritius.  It should also be pointed out that and as already indicated in previous notifications, the 
scope, coverage and intensity of be nefits of the subsidies originally notified has been reduced with 
time. 
 
 Regarding the second question, the legislati on governing investment schemes provides that 
any enterprise falling within a particular scheme, whether foreign-owned, locally-owned or a joint 
venture, is eligible to the incen tives associated with the Scheme. 
 
 
Export Enterprise Scheme
 
Pioneer Enterprise Scheme  
 Q2. Could Mauritius please clarify if the Pref erential Registration Duty provided for under 
the above programmes have been phased out?  If  not, please explain why these exemptions do 
not meet the notification requirements set forth in document G/SCM/39.  
Reply
 
  Before the 2005/2006 Budget, the EPZ companies and Pioneer Status enterprises, benefited 
from a lower rate of registration duty on the regi stration of a deed witnessing the acquisition of 
industrial premises and of simila r immovable property.  This has been corrected in the 2005/2006 
Budget.  Henceforth, any company engaged in manuf acturing, whether for expo rt or for local sales, 
whether operating under an incentive scheme or not is now charged the same rate of duty registration.  
Hence, the preferential rate of 'registration dut y' is now not specific to EPZ and Pioneer Status 
Enterprises but has been extended to all manufacturing companies. 
 
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