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Excise Tax

What is Excise Tax?
It is a tax levied on four excisable goods imported or locally manufactured in Seychelles:
  • Cigarettes or tobacco
  • Alcohol
  • Motor Vehicles
  • Petroleum Products
Click here to download the Excise Tax Act, 2009


Obligations
Manufacturer of excisable goods must:
  • Registered with Trades Tax Import Division [CUSTOMS]
  • Secure a bonded warehouse where Excisable goods are manufactured
  • Excise Tax collected by local manufacturer on alcohol and tobacco reported on BAS and remitted on or before the 21 day of the month.

Imposition of Excise Tax
Excise Tax is imposed on:
  • Excisable goods removed from taxation control [bonded warehouse] by a registered manufacturer; or
  • Excisable goods imported into Seychelles

Applicable Rate of Excise Tax
  • An export of excisable goods is liable to zero rate of excise tax provided the goods have been entered for export under the Customs Legislation.
  • An excisable goods removed from taxation control [bonded warehouse] is liable at the rates specified in column 4 of Schedule 1 of the Excise Tax Act, 2009. The rate of excise tax depends on the volume of alcohol.
  • An excisable goods imported into Seychelles is liable at the rates specified in column 4 of Schedule 1 of the Excise Tax Act, 2009. Excise Tax payable on goods imported into the country is processed on a bill of entry.

Calculation of Excise Tax
  • Excisable goods removed from bonded warehouse

    Example: Ozone (Seychelles) Ltd manufactures spirits with alcoholic strength by volume not exceeding 8% and sold 243 litres. The applicable rate of Excise Tax on alcoholic strength by volume not exceeding 8% is SR22.27 per litre.
    Excise Tax = [243 x SR22.27] = SR5, 411.61
  • Excisable goods imported into Seychelles

    Example: NNL Co. Pty Ltd imported a carton of vodka, 750cl = 12 bottles x .750 = 9 litres. Excise Tax per litre = SR120.
    Excise Tax = [9 litres x SR120] = SR1, 080

Exempt Goods
Exempt goods relates to imported vehicles designed for transportation of persons or goods, alcoholic beverages and tobacco as specified under Schedule 2 of the Excise Tax Act, 2009.


PENALTY AND ADDITIONAL TAX
The imposition of penalty and additional tax is as per the Revenue Administration Act, 2009.
  1. Interest – Section 41
  2. Late Lodgement of BAS – Section 42
  3. Late Payment of Taxes – Section 44

Offences
  • Non registration by local manufacturer is guilty of an offence as per section 10 and on conviction is liable for a fine of not less than SR100 K but not more than SR1.0 M
  • A registered manufacturer is guilty of an offence and on conviction is liable for a fine of not less than SR250 K or to imprisonment for not more than 6 months, or to both a fine and imprisonment, i.e., manufacturing excisable goods in premises that are not a bonded warehouse.

Imposition of Sugar Tax on Drinks
As of 1st April 2019, additional rates will be applied under Excise Tax as Sugar Tax, as specified in the Statutory Instrument (SI) 14 of 2019, Excise Tax (Imposition of sugar tax on Drinks) Regulations, 2019. The Sugar Tax apply to drinks containing sugar content exceeding 5 grams per 100ml, including flavored milk. Sugar Tax will not apply to fresh local fruits drinks without any additives and plain milk.

Drinks exceeding 5 grams per 100ml sugar shall be subject to a tax of SR4 per litre. Upon importation, all importers must submit a declaration containing the sugar content of the drink products.

Click here for the description of products liable for Sugar Tax.

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