The implementation of Value Added Tax (VAT) in Seychelles under the leader of Mr. Pierre Laporte, a rookie Minister of text book qualification and little practical hands on experience has turned into the financial disaster of the year 2013. We are only in January.
Minister of Finance Island Hops VAT into Play
To implement VAT at a whopping 15% overnight, Minister of Finance went to La Digue where they still use cows to pull the taxi service, with an entire Minister of Finance delegation. He went to Praslin, and called for a meeting with the merchants and shop keepers. His staff said for all of 2012, that companies can opt in and/ or opt out of the VAT 15% scheme. All in all, the very concept of opting in and opting out is sacre-religious when you discuss the implementation of VAT. If you want to confuse shop keepers, confuse the consumer, and piss the hell out of everyone, create confusion, foment anger, and finally conclude with disaster, tell people they have a choice over participating in a tax scheme. Minister Laporte and company have done just that, but this is not the worse, it gets worse.
VAT On Some Items, But Not On Others –Ho Ho Ho!
To make matters worse, the Minister of Finance under Mr. Laporte, rookie minister, said that VAT will apply to some items but not to others. If there ever was a scheme to brew chaos and deflate the Consolidated Fund, this is it. Now Mr. President Michel may be tempted to believe that Mr. Minister Pierre Laporte works for SFP and has been hired to undermine and destroy the James Michel Administration. Mr. President, we oppose you rightfully. But we will not collude with such a left footed fellow as Mr. Laporte to undermine your regime. The person doing that, is the same person who wanted to become Vice President, after Dr. Ramadoss became President of the Republic of Seychelles. At SFP, we are more sensible and serious about political issue and running of our country.
Mr. Laporte said to us, VAT will apply to some chicken, but not to others. Can you believe that? Mr. Laporte also said VAT will apply to some pork products and not to others? Some vegetables, but not to others. Some juices, but not to others. No rice on VAT, but VAT will apply to some eggs but not to others. How in the world is a cashier without a degree in structural engineering going to figure out what he/she is suppose to charge at the check out counter? Mr. Laporte has navigated the Ministry of Finance into total confusion and it is brewing into a total disaster. My advise to Mr. Laporte is to abandon his VAT ship that has hit the reef in early January. Here is what you do next. Read on fellow. You just read the problem part, now here is the solution.
Solution To VAT Madness
After you have advised the public that VAT is suspended temporarily, say Six (6) months to allow all stocks to clear in reasonable time. Apologize to the Public for your haste. As you know haste, makes waste. Take 100% responsibility and stop blaming merchants. We are no longer in the One Party State, according to you.
Soon after cancelling this VAT program of 15% for some items but not for others, for some services but not for others, just go on SBC and say this: “VAT WILL BE SET AT 8% FOR ALL GOODS AND FOR ALL SERVICES IN SEYCHELLES AT THE POINT OF SALE AND SHALL BE INCURRED BY THE BUYER/ PURCHASER”. End of story.
Now, do you think you can do that Mr. Laporte? Go to your data base, times 8% by the national turnover. If that is not enough money for you to run a government, you need to resign as minister, join us in the real world, and start to run a business. Then we will see where your big mouth takes you when you say the Tourism Industry just likes to make noise and complain. I bet your first business will be a take away……be sure you do not eat all the supply, since some of your partners have a habit of smoking all of the supplies.
Sesel Pou Seselwa!
May God Bless All Freedom Loving Seychellois !