Late last year, the People’s Communist National Assembly (One party State apparatus still in place in practice) passed without opposition a budget and a huge salary emoluments bill that will double salaries of politicians-active and non active, in the month of June 2014 when the Seychelles Communist Party PL will celebrate 50 years of existence, though it has changed its name numerous times, to keep ahead of the murdered, the disappeared under the current logo at the time.
Most Communist countries insure the workers own all systems of production through STATE OWNERSHIP of all the means, apparatus of economic production. During the One Party state this traditional style of Communism was implemented, and it lived a short life, as corruption crippled the ideology.
Today, under the PL, the Seychelles Communist Party has resorted to controlling and taking ownership of fruits of production through a excessive VAT system that breaks the norms of VAT and social decency, hence making Seychelles unattractive to shoppers, visitors, residents alike.
The VAT system in place places tax at a diabolical 15% on every single item purchased and every single service delivered. The Communist do not stop here, they tack on another 1.5% in CRT or Corporate Responsibility TAX on revenue, not profit of every single business.
What Effect on Business Visitors Residents?
Goods entering the country are taxed 15% on arrival. The value of the goods are calculated based on Cost Insurance Freight (CIF). Seychelles is 1,000 miles from anywhere. She is mostly 2,000 miles from anywhere. Just in this single administrative faux pas of dishonesty, the PL Communist raise the cost of all goods entering Seychelles by 30% across the board.
The just course of action that is intellectually honest is to apply VAT on a FOB basis : “Free on Board”, meaning, VAT will be applied only on the value of the goods, less the tax paid for it already in the originating country. VAT should not be applied in the case of island economies to shipping and air cargo freight. It is ridiculous and it is called: STEALING! PL Communist, you are stealing from us, and you are stealing from each and every single Visitor to Seychelles. It is your fault that Seychelles is expensive, no one else. It is a fault that can be easily be avoided.
When government taxes oppressively, they affect business cash flow, discourage investments, turn Seychelles into a red light “DO NOT INVEST IN ZONE”. This is what the PL Communist have done to Seychelles today with excessive, I would say oppressive taxing.
The Poor Visitors
Being in the Tourism Hotel Industry as a serious player, I cannot count the amount of times I have read emails from Visitors who say:
1. we are a family of Four(4) we are travelling to Seychelles, but the tickets are expensive, the rooms are expensive, the food and drinks we understand, are expensive, we will look at another destination.
2. Wow the islands are beautiful, but we looked around, everything is so expensive, the Air Seychelles ticket alone cost me euro 140.00. I could go on a 2,000 mile trip from Heathrow for that much. A Beer cost me 8.0 euro. A taxi cost me 40.00 euro for a 10 minute drive.
To the Poor Visitor, all I can say is blame PL Communist for these high costs for a holiday that force you either to cancel your trip, or in the alternative drink bottle water for 10 days.
While James Michel is writing book on book, as if he is some sort of Walt Whitman or David Longfellow or even Plato , the poor residents of Seychelles have to fork out 15% of all their salaries on every single item they purchase in a shop to feed their families. A person earning 5,600.00 will spend 840.00 on VAT. An additional deduction of 3% on their salaries before they even touch it. All these deductions are fine in a rich country, where salaries afford luxuries. But in a country where salaries afford only Two weeks food supply, you are abusing your people, and beating them to a pulp. There is a big difference between touching Scr. 5,600.00 per month or Scr. 4,600.00 PL. What you are doing to Seychellois is a disgrace to the founding principle of SESEL POU SESELWA! You have turned it into “SESEL POU CRONY”.
SCCI and SHTA Need To Relook At VAT
The SCCI and SHTA need to make VAT a TOP PRIORITY on the agenda to deal with government and resolve this great abuse of a tax system.
Room taxes are not VAT. They cannot be 15%. They must be acceptable to the visitor and that usually means 4%-7%. Above all, room taxes cannot have the effect of pricing Seychelles out of the market with its regional and international competitors. Each year you lose a Visitor to another destination, you lose that Visitor’s revenue for that year forever, DUMBO.
VAT on goods in the store for consumption cannot be at 15% if you expect your population to act responsibly, respect the Police, respect the structures of State. They will not. What you take from them unfairly, they will retake from you by Ten (10) times.
VAT on goods in Seychelles need not exceed 10% and it need not be applied to freight. That is called stealing.
The internet is catching up to you PL. Your scam on VAT which is an act of THEFT is exposed. By tomorrow morning, the World will know. By Saturday, do something about it. That is how the World works now a days, SFP will make sure of that.
Seselwa Unite For Sesel Pou Seselwa!
May God Bless All Freedom Loving Seychellois!