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There is need for a tax system that is simple and easy to implement

September 22, 2017

 The Ministry of Finance, Trade and Economic Planning, and the Seychelles Revenue Commission, conducted a series of consultations and briefings with government institutions, business community, media, and the general population amongst others, on the Progressive Income Tax (PIT).

With the main idea of promoting good governance and ensure adequate management of public funds, which are central elements to transparency and accountability, the consultation meetings and briefings on the Progressive Income Tax are important aspects of sensitizing and educating different groups and sectors of the population.

The meetings aims to discuss the differences in the tax structure, the policy intention of the changes, the legislative changes, the administrative and operation of the tax system, the benefits and effects of the new tax system.

During the different presentations and discussions, different topics under the PIT system were addressed, such as:-

  • The rationale behind the introduction of the new PIT system,
  • details on the formula to calculate the amount of tax to be paid,
  • Discrepancies in salaries of directors for PIT,
  • The proposed threshold of SR8555.50 amongst others,
  • Primary and secondary employment,
  • Declaration by employees to employers, employers to SRC
  • Certificate and forms,
  • The various tax rates,
  • Treatment of directors and board members fees,
  • Exempted emoluments,

The Minister for Finance, Trade and Economic Planning, Dr. Peter Larose, pointed out that there is a need to put in place, a tax system that is fair, and easy to understand.

The meetings provided an opportunity for participants to interact with relevant officials on various aspects of the new tax system and to see how best their views can be incorporated in the implementation phase, to ensure that the majority of the working population benefits.

The views, concerns and proposals that were highlighted in the meetings would be compiled by the Ministry of Finance, and submit to the Government for consideration for eventual policy change if required before the drafting of amendments in the Income and Non-Monetary Benefit Tax Act 2010 is finalized for implementation of Property Tax.

Note that the enactment of the law would be January 2018 with the entry into force July 2018.

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