Lower Taxes is a key policy of the SNP. Party Leader Wavel Ramkalawan has announced the party’s stance on taxes and made the main proposals in this policy during his reply to the Budget address last week.
The SNP wants to redress the trend for more and more taxes adopted by the SPPF/Parti Lepep, and brought to full force under the IMF-directed economic programme. Seychellois workers and families today are burdened by a range of taxes that bear hard on their purchasing power and standard of living. Reducing the tax burden is a key goal of social justice and economic revival.
The SNP has also taken a stance against the principle of a flat tax rate for all, which means that lower income families bear a heavier burden in proportion to their income.
The proposals which have been outlined by the SNP are:
• Removing personal income tax for persons earning the minimum salary. The SNP is in favour of a tax-free threshold of up to R5000 of salary per month, which will give lowest income families an immediate improvement in their disposable income.
• Establishing a graduated scale for tax rates, where salaries will be taxed at 0%, to 20%. The 20% rate will apply for income over R25, 000 per month. The tax rate will decrease for the great majority of workers and remain the same for people in the medium to high bracket.
• Making the first 20 hours of overtime per month tax-free.
• Removing tax on the first R10, 000 of gratuity or length of service payments
• Giving tax refunds for essential medical and educational expenses through the system of tax returns
To offset the tax reductions, the SNP has proposed a tax on foreign owned property which will contribute R80 million. These tax proposals will be part of the SNP manifesto for the Presidential election due in 2011.
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