Follow us on:

Facebook Twitter LinkedIn YouTube

Domestic

First series of meetings on business tax reforms completed |23 December 2020

First series of meetings on business tax reforms completed

The meetings on Praslin …

The Ministry of Finance has completed the first series of consultative meetings on Mahé, Praslin and La Digue in regards to the business tax reforms.

Sectorial meetings with the tourism, fisheries and agricultural sectors will now be scheduled so as to complete the consultative process.

During the consultative meetings that were held on Praslin and La Digue December 18 & 19 respectively, the stakeholders provided their views on the proposals and were generally in agreement that all businesses should be contributing their fair share of taxes.

Particular concern was raised on aligning of tax free threshold for employees and sole traders, stating that the risk component was not being considered.

The lack of available accounting firms and tax accountants were raised as one of the main reasons businesses at times are not able to submit their returns on time, which have in certain instances prevented them from obtaining government contracts.

The attendees were advised that the accounting firms are able to submit their lodgment plan to the Seychelles Revenue Commission (SRC) so as to prevent them from being penalised.

The participants also raised other issues in the meetings, which were also brought up in the other meeting on Mahé, particularly the issue of informality and illegal businesses operating in the country.

Particular examples were given on La Digue, were apparently buggies were providing taxi service and many bicycle rental businesses were not particularly declaring their real income. Greater enforcement by government authorities were demanded by the stakeholders attending the meetings.

The participants also queried on the yachting business which, according to them, are numerous in Seychelles, but they are certain they are not paying adequate taxes.

This was further escalated to the imbalance of the Value Added Tax (VAT) threshold, which is currently set at R2 million which results in many businesses creating separate business units or simply managing to remain under the threshold so as not to pay VAT.

The chairperson of the SRC, Chrystold Chetty, stated that he was expecting a greater attendance by the public to these meetings, especially of course from the business community.

“However, we managed to capture the views expressed by those present on both the proposals being put forward, but also on the taxcollection mechanisms and deficiencies. 

It was refreshing to note that the communities understand fully the necessity of their contributions to the country’s management and development though taxation. It is clear that many are unhappy that while some are making efforts in paying their taxes properly and on a timely basis, others are just not complying with their obligations or are even practicing tax avoidance,” Mr Chetty said.

“In my opinion, the new proposals are generally being well received and there is consensus that there should be fairness, with a system by which every citizen should pay taxes, but with a taxation mechanism which should be simpler so that it helps to improve on the ease of doing business. The Seychelles Revenue Commission has taken note of the suggestions of taxpayers for the improvement of tax collection,” added Mr Chetty.

 

Press release from the finance department

More news