The Seychelles Ministry of Finance, National Planning and Trade has unequivocally stated that the government has no plans to modify the tax system, directly refuting recent social media claims about impending tax reforms.
During a press conference on Monday, September 22nd, at Liberty House in Victoria, Principal Secretary for Finance Astride Tamatave and Director General of the Domestic and International Tax Policy Division, Seylina Joymon, addressed the public. PS Tamatave emphasised that the rumours regarding revised income tax, taxes on small businesses, and the introduction of a capital gains tax and inheritance tax are entirely false.
“The government’s objective has always been to maintain an equitable and efficient tax system,” stated Tamatave, asserting the importance of regular reviews as a vital principle in tax policy. She further explained that taxes are frequently adjusted during annual budget revisions to align with economic developments and the current situation. “A tax system must be resilient and adaptable—it cannot remain static forever.”
On the specific issue of a capital gains tax and inheritance tax, PS Tamatave firmly declared that these measures have never been under consideration by the government. Regarding businesses, she pointed out that any tax changes in the past five years have focused on reductions rather than increases.
With respect to income tax, she mentioned that discussions are underway regarding a proposal to allow individuals to submit an end-of-year tax return based on their contributions.
This proposal is still in the research phase, with comparisons being drawn to tax models in other similar small island nations such as Mauritius. The goal is to establish a framework suited to the local context, particularly for those who utilise private alternatives over public services like healthcare and education. Currently, no internal policy paper exists on this subject, and talks remain exploratory.
Additionally, PS Tamatave confirmed that the government has not engaged in discussions regarding the dividends tax, as it prioritises encouraging investments.
In conclusion, Ms Tamatave assured the public that the economy is performing well and that projected expenditures align with the fiscal framework being developed for the upcoming budget.
SOURCE: finance.gov.sc
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