Seychelles inflation edges down to 7.6% in October

Posted in Seychelles' statistics at 3:54 pm by Robert Klien

Consumer prices in Seychelles rose 0.1% in October 2012 from a month before, sending year-on-year inflation down to 7.6% from 7.7% in the previous month.

Prices of fish increased by 7.9% from the year ago period, while prices of other food items rose by 5.5%, according to the issued statement.

The non-food category increased by 8.4%.

The above-mentioned data was revealed on November 6 by the National Bureau of Statistics.


Seychelles Fiscal Reform Agenda

Posted in Business and Economy, Financial Services, International Organisations, International relations at 2:17 pm by Robert Klien

According to the International Monetary Fund (IMF), the Seychelles is in good stead to achieve its medium-term debt reduction target. The IMF said this when welcoming the forthcoming introduction of a value-added tax regime from January 2013, as a key feature of the jurisdiction’s revamped tax regime.

A visiting IMF mission reported that the government has made “sustained progress” in implementing the IMF-supported program.

The IMF stated that “All end-June 2012 quantitative targets under the program were met – some, including the fiscal primary balance target, by a wide margin.”

It also found out that “The Seychelles economy has shown resilience in the face of the difficult global environment. Economic growth has held up thanks to increasing tourist arrivals from non-traditional markets; fiscal policies have remained firmly on track toward the government’s target of bringing public debt down to 50% of gross domestic product by 2018; and debt restructuring is nearly complete.”

“The broader structural reform agenda is also moving ahead, with implementation of the electronic clearing house and completion of a study on utility tariff reform. The mission welcomes adoption of the value-added tax, and notes that delayed implementation to January 1, 2013 does not materially affect the reform agenda.”

Looking ahead, the International Monetary Fund said that the Seychelles’ open economy remains highly vulnerable to external shocks. The Fund stressed the importance of rebuilding the territory’s fiscal buffers. To support the government’s efforts, the IMF has approved a 1-year extension to an IMF financial assistance program, until December 2013, and an increased quota worth an additional USD 10.2 million. In return, authorities in the Seychelles have committed to a number of economic policies and reforms to lock in the fiscal gains achieved to date.

The introduction of a VAT regime comes following several years of fiscal reform. Local authorities have reduced the personal income tax rate from 18.75% to 15%, effective October 1, 2010, and on January 1, 2011, the personal income tax rate for expatriates was hiked by 10%, introducing one harmonized rate of personal income tax for all employees in all sectors.