02.10.13

Seychelles inflation rises to 5.9% in January

Posted in Seychelles' statistics at 6:19 pm by Robert Klien

According to the National Bureau of Statistics, Seychelles’ year-on-year inflation rate rose to 5.9% in January 2013 from 5.8% in December 2012.

Consumer prices rose 0.5% month-on-month in January.

The statement said that fish prices increased by 0.2% in January compared with a rise of 0.3% in December, while other food prices rose by 0.8% compared with a rise of 0.4% the month before.

The two categories make up 28.8% of the basket of goods used to measure prices changes.

In the other food category, the main price increases were in vegetables, non-alcoholic beverages and sugar, jam, honey and confectionery.

In the non-food items, the main increases during the month were in the price of education up 7.9% and transport up 1% , compared with December.

02.04.13

Seychelles Explains Tax Policies to IMF

Posted in Business and Economy, International Organisations, Seychelles government at 6:20 pm by Robert Klien

In its request for a financial support extension from the International Monetary Fund (IMF), the government of the Seychelles has confirmed that it will take measures to increase tax compliance in 2013. These will be taken with a view to grow revenue within the continuing fiscal consolidation program that followed its default and subsequent debt restructuring since 2009.

The government stated that the jurisdiction is expected to have attained a primary budgetary surplus of 5.9% of GDP (gross domestic product) in 2012, much larger than the program target of 4.5%. In the first 9 months of the year, revenues exceeded target by 2% of GDP because of large stamp duty and other tax receipts arising from the sale of the D’Arros Island between two private parties.

Within its letter of intent written to the Fund, the government committed to carrying out a fiscal policy in 2013 consistent with the aim of achieving debt sustainability over the medium-term, namely to reduce public debt to 50% of GDP by 2018. To that end, the primary surplus target for 2013 is 5.6% of GDP, so that public debt as a share of GDP should then decrease to 78% in 2012 and to 74% at the end of 2013.

Government revenue is expected to decrease slightly as a share of GDP in 2013 to 36.9%. Net of the exceptional revenue in 2012, the growth in revenue this year will partly reflect a number of measures to fight poor tax compliance.

A revenue-neutral value-added tax (VAT) from January 1, 2013 has replaced the goods and services tax at the same rate of 15%.