More exemption on basic commodities.
May 23, 2017
Tuesday 23rd May 2017, VICTORIA, SEYCHELLES: A list of seven basic commodities has been revised and will now be exempted from the Value Added Tax (VAT), as from the 15th April 2017.
The goods are as follows:
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Liquid Milk Milk/Cream not concentrated or containing added sugar or sweetening of fat <1%
Milk/Cream not concentrated fat >1% <6%
Milk and cream not concentrated reconstituted (e.g.UHT) of a fat content by weight > 6%
Fresh milk and cream of a fat content > 6 % by weight (whipping cream)
Other milk and cream of a fat content > 6% by weight
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Coffee Coffee not roasted or decaffeinated
Unroasted decaffeinated coffee
Roasted coffee not decaffeinated
Roasted decaffeinated coffee
Coffee husks and skins
Other coffee and coffee substitutes
Extracts, essences and concentrates of coffee and preparation with a basis of coffee
Roasted chicory/other roasted coffee subs extracts essences decaffeinated and not decaffeinated |
Washing powder Washing preparations put up for retail sale
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Tea Green tea flavoured or not, in packings not exceeding 3 kg
Black tea partly or fully fermented, flavoured or not in packings not exceeding 3kg
Mate
Herbal Infusions |
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Sauces Soya sauce
Tomato ketchup and other tomato sauces
Mustard flour, meal and prepared mustard
Chilli sauce
Other sauces, mixed condiments and mixed seasoning
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Cheese (Edam, Gouda or Cheddar) Fresh (unripened or uncurd)
Grated or powdered
Processed cheese not grated or powdered
Blue veined cheese and other cheese containing veins |
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Cereals Groats and meal of wheat, maize (corn), rice, oats
Cereal pellets
Rolled or flaked grains of oats worked grains of oats, maize (corn), eg. hulled, pearled, sliced or kibbled
Germs of cereals, whole, rolled, flaked or ground
Bulgur wheat
Cereals pre-cooked
Prepared food obtained by swelling or roasting of cereal or its products in grain, flakes precooked
Prepared foods obtained from unroasted cereal flakes or from mixtures of unroasted or roasted cereal flakes and roasted cereal flakes or swelled cereals |
Soups Soups and broths
Homogenised composite food
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Household detergents Soap and organic surface-active products for toilet use (incl. medicated products)
Organic surface-active agent prep for washing in the form of liquid or bars
Organic surface, active agents products & prep. for washing skin in form of liquid
Anionic, Cationic, Non-ionic, organic surface-active agents, whether or not put up for retail sale, washing preparations & cleaning preparations
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Healthy cooking oils Soya-bean oil, Crude oil,
soya-bean oil
Ground nut oil
Virgin olive oil
Sunflower-seed safflower oil
Maize (corn) oil
Castor oil
Sesame oil |
Upon exemption of the goods as from April 2017, it is estimated that the Government will incur a loss of approximately RS. 26.67 million.
The revision of the basic goods follows the announcement made by President Danny Faure in his State of the Nation Address in February this year, stating that the government will revise the list of goods, which will not be subjected to VAT in its effort to reduce the cost of living. Government is therefore counting on private sector to ensure that the benefit accrued from the new exemptions is transmitted to the consumers through price reductions.
The Minister for Finance, Trade and Economic Planning, Dr. Peter Larose also echoed the same message whilst delivering his budget speech for 2017. Minister Larose pointed out that; “our strategy is to start with State Owned Enterprises (SOEs), so that they reduce the cost of their goods and services offered to consumers. SOEs should set the example, and we expect that the private sector will join forces. We will do it because we have made a commitment to put more money in the people’s pockets”.
The Ministry of Finance, Trade and Economic Planning has consulted the Consumer Price Index (CPI) for sub-groups of items 2014 – 2016, compiled by the National Bureau of Statistics as a baseline for goods presently not exempted from VAT.
Additional goods have also been proposed to the government for approval for publication and they comprised of healthy cooking oils, herbal fusion tea, cornflakes, all soups and broths.
You are welcomed to meet with us on Friday 26th May 2017, at Liberty House, at 3.45 p.mto provide additional details of the Press Release.