VICTORIA, Seychelles — Cabinet has approved the introduction of an electronic invoicing system for the Seychelles Revenue Commission and further amendments to the Foreign Exchange Act of 2009, Vice President Ahmed Afif told a press briefing at State House on Thursday. The briefing was held to communicate decisions taken at the most recent Cabinet meeting, chaired by President Wavel Ramkalawan on Wednesday. The deputy cabinet secretary for policy affairs, Margaret Moumou, assisted the vice president during the session.
The e-invoicing system will allow the automatic transfer of billing information between businesses and the tax authority in real time. Officials say the system will reduce leakage, improve revenue collection, lower the cost of enforcement, and make value-added tax declarations more accurate for both the authority and the businesses that file them. For now, the new system will only cover VAT, with other taxes to be added in stages.
On the foreign exchange side, Cabinet agreed to amend the 2009 act to close loopholes that have allowed some businesses, including certain hotels, to set their own exchange rates when charging customers. The vice president said the aim is to make the licensing and rate-setting system mandatory over time. Licensed banks and bureaux de change will continue to operate under existing rules, while other businesses will be required to follow the market rate on the day of the transaction.
Cabinet also took a decision on construction materials in the aftermath of the December 7, 2023 disasters. The government has begun engaging the Civil Construction Company Limited (CCCL) and other relevant authorities, including the police, with a view to negotiating access to leftover materials on site. An estimated 70 to 80 tonnes of material are involved, and the government is keen to ensure that Cascade residents affected by the events have first call on what is available.
Vice President Afif also revealed that more than 150 houses severely damaged in the events need to be reconstructed, and that the lack of materials has slowed redevelopment. He acknowledged that a return to normal in the construction sector will take time but said the government is committed to working with the industry to ease the pressure. He added that engagement with the police was necessary to ensure the ongoing investigation was not disrupted.
Other items approved by Cabinet included the first review of the outsourcing of government cleaning and ground maintenance services. The vice president thanked the contractors currently delivering the work and called on the Landscape and Waste Management Agency to tighten its contract processes. Cabinet also approved amendments to the policy on refund of VAT on purchases by diplomats, consular posts, international organisations, and other entitled individuals.
