04.05.07
Michel’s State of the Nation address. Seychelles Offshore Sector to grow and develop
On March 20, 2007, at his annual State of the Nation address, Seychellois President James Michel said that the government is looking for opportunities to expand the offshore business sector with new products. Also, he said the government and is looking to boosting foreign investment by means of further liberalisation of foreign exchange controls.
According to President Michel, the Seychelles offshore sector has already revealed its potential to assist the development of the Seychelles. Also, he emphasized that the government is able to initiate more schemes used for attracting further capital from around the world, which is possible to a great extent due to the growth in the tourism and fisheries sectors.
The President expressed the intention to widen the offshore financial services that are already provided. He also added that such new services as offshore special license companies, offshore mutual funds, a stock exchange as well as new products and services in the insurance sector will be offered.
President Michel was also speaking about promoting investment in the onshore business environment. A new law exempts payment of business tax on the 1st USD 41 000 of profits for all companies, and it comes into effect from January 1, 2007.
In accordance with Michel, the government is also going on restructuring the tax system – it is creating a single Revenue Authority empowered to collect all dues on behalf of the government, registration fees and licenses includingly. Currently, the general Office of Tax operates under the the Ministry of Finance.
The Seychellois government is expecting an increase in the incoming flows of foreign exchange. Michel informed that exports of goods and services have risen by 20% from 2005 to 2006, whilst flows linked to investments have increased by more than USD 65.5 million from 2005 to 2006.