With strong economic activity continuing in Seychelles, the IMF disclosed that it expects the country's primary surplus – the surplus before accounting for the cost of interest on debt – is to reach three percent of gross domestic product in 2016, despite the expansionary impact of the fiscal initiatives announced in the State of the Nation Address (SONA) in early 2016. Those measures included personal income tax (PIT) cuts and increases in pensions and the minimum wage.
The IMF confirmed that "the SONA initiatives entailed substantial fiscal costs, around three percent of GDP on a full-year basis." The PIT reforms were designed by the Government to reduce the tax burden on low-income earners and, on a phased basis, make the tax system more progressive.
The IMF noted that the proposed 2017 Budget includes "some measures to moderate the impact of the SONA initiatives," including a new property tax on foreigners' land ownership in Seychelles, and realignments to the presumptive tax rate and to the tax rate on profits made by individual businesses.
However, its opinion was that "additional and permanent measures to boost revenue and contain expenditure will be needed to ensure a steady debt reduction over the medium term."
3 comments:
Translation? Does it mean the SONA initiatives are going to bankrupt the government to a point where it will default on its loans?
No. No. It means the plan set out by James Michel will accelerate our economy. We will be rich, rich rich.
Abu Dhabi will come to us for help.
Just you wait and see.
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YES ...... IT IS GOING TO BE INFLATORY ..AND RISK RECESSION .......ANF THEN PL GOVERNEMNT WOULD HAVE TO BORROW MORE AND MORE ........FROM IMF AND WB.......continue living on bondaid as buglars....13th saLary
.10 PUC ETC..ETC..ETC .....WE ARE GOING OFF TRACK ONOT ON TRACK ....AND IMF WARNING IS IN FACT A CONFIRM OF THE WORSE IN THE OFFING .......
If pl wanted to be on track then it should has follow the policies in aplce that were working not burden them ////////you can always perfect something that works but one should never destroy what works.
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