Finance minister meets business associations in preparation for budget 2021 |10 December 2020

The meeting in progress

The Minister for Finance, Economic Planning and Trade, Naadir Hassan, held a consultative meeting last Thursday with various trade and business associations in preparation for the budget 2021.

The meeting was held at the Seychelles Trading Company’s conference room.

The attendees were presented with an overview of the country’s current macro-economic outlook for 2020 and the ministry’s outtake for the fiscal year 2021 going forward.

In turn, the chairperson of the Seychelles Chamber of Commerce and Industry, Oliver Bastienne, presented the Chamber’s view on areas the government needs to place emphasis, particularly as the economy is being affected by the Covid-19 pandemic.

The Chamber stressed that monetary policy should target at reducing interest rate, that fiscal policies should aim to reduce taxes and increase public spending and investment to help stimulate the economy, education and training should be made priority and increased, and that policies should be adopted that incentivise people to seek and accept work rather than just getting benefits.

Minister Hassan stressed on the importance for businesses to have realistic expectations as the country braces for a very challenging year ahead.

He stated that government is currently reviewing the FA4JR scheme in view that in its current structure, the scheme is not sustainable.

The scheme is attributing to a reduction in productivity and increasing liquidity in the market through consumption spending, which is a contributing factor in the rise of the foreign exchange rate due to continuous demand.

Discussion also revolved around the health guidelines and travel restrictions from countries as issued by the Public Health Authority that has affected how the tourism sector can revive itself.

There was also a call for the government to review the employment policies it had introduced in a manner that it does not interfere with how the private sector manage their businesses.

In addition, concerns were raised on the need for financial institutions to further assist the business community by rescheduling their loans in view that the moratorium would soon end and there is still not necessarily an increase in business activity for all sectors in the economy to allow them to start re-servicing their loans.

Further consultation with the private sector are also expected in the coming weeks in regards to a business tax regime review and assistance to the private sector as well as labour issues, productivity and social assistance.

The minister stated that he aims to keep the consultative process with the private sector on-going on policy issues that is to affect businesses and the economy in general.

Press release from the Ministry of Finance, Economic Planning & Trade