Harmonisation Code to organise and modernise VAT exempted commodities |09 January 2018

At the first cabinet meeting for this year that was chaired by President Danny Faure, a number of legal and policy memoranda was considered. And in regards with his policy of good governance, transparency and accountability, a briefing session was held for the press the next day. The meeting was chaired by the Secretary of State for Cabinet Affairs, Mohammed Afif; deputy Cabinet Secretary for Policy Affairs, Margaret Pillay, and deputy Cabinet Secretary for Institutional Affairs, Johny Bastienne.

Among the policies considered, Cabinet approved amendments to regulations that are required as part of the migration of the (HS) from version 2007 to version 2017.  The new regulations, which will be effective from March 2018, will create new trade descriptions for certain goods which will enable the Energy Commission to introduce minimum standards under which the goods may qualify for VAT exemption. This is in line with government's drive to promote the use of  environmentally-friendly and energy efficient electrical appliances, tools, machinery and equipment.

Clarifying what the regulation is about, Mr Bastienne said normally there is a certain code that is applied on each commodity. They can be VAT exempted if government wants to apply VAT exemption.

“Since last year there are certain goods the government is applying VAT exemption. So this harmonisation is to finalise all these remaining goods that are to be classified under the new Harmonisation code. They are mainly commodities that are aimed at reducing the cost of living like juice, baby stuff etc…,” he explained.

Also in relation to this code, government has also decided to apply these VAT exemptions to energy efficient appliances, equipment like light bulbs and any other products that the Seychelles Energy Commission has earmarked as such and hence qualifies for VAT exemption.

Caption

One of theenvironmentally-friendly and energy efficient equipment fairs held by the Ministry of Environment, Climate Change and Energy. Such equipment will benefit from VAT exemptions under the Harmonised Commodity Description and Coding System