G/SCM/N/284/SYC  
 
10 May 2016  
(16-2569)  Page: 1/6  
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 
OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES 
SEYCHELLES  
The following communication, received on 3 May 2 016, is being circulated at the request of the 
Delegation of Seychelles. 
 
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Pursuant to Article XVI: 1 of the GATT 1994 an d Article 25 of the Agreement on Subsidies and 
Countervailing Measures (ASCM), Seychelles submits herewith the new and full notification for the 
fiscal year 2015. In accordance with Article 25.7 of the ASCM, the notification of the measures 
concerned does not prejudge their legal status, effects or nature under the GATT 1994 and the ASCM. 
I. ABATTOIR SUPPORT 
1. Title of program  
Abattoir support. 2. Period Covered by the notification 
Fiscal year 2015 (i.e. 1 January 2015 - 31 December 2015). 3. Policy objective and/or purpose 
(a) As part of the exercise to privatize state owned enterprises, the abattoir was privatized 
in 2012. Given that this was a new form of activity for private sector participation, it is thus 
classified as an infant industry. 
(b) The assistance is given to the abattoir as a support mechanism designed to ensure that the 
slaughter of animals remains at an affordable price, while maintaining high hygienic and 
SPS standards in the form of infrastructure support. 
4. Background and authority 
The assistance is administered by the Minist ry of Finance, Trade and The Blue Economy. 
5. Form 
Cash payment. G/SCM/N/284/SYC 
 
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  6. To whom and how the assistance is provided 
The assistance is provided to the central abattoir on a monthly basis, on the condition that the 
abattoir provides its monthly production data, which serves as a control mechanism for disbursement of the subsidy. 
7. Amount 
The total subsidy disbursed to the abattoir for the year 2015 amounted to SR 2.6 million. 
8. Duration 
This is a 5-year program, subject to yearly reviews. 9. Statistical data permitting an assessment of the trade effects 
No data available. II. INVESTMENT LOANS FOR AGRICULTURAL SECTOR 
1. Title of program 
Investment loans for agricultural sector. 
2. Period Covered by the notification 
Fiscal year 2015 (i.e. 1 January 2015 - 31 December 2015). 3. Policy objective and/or purpose 
(a) To provide loans to agricultural producers (farmers) to invest in sustainable and 
environmentally friendly means of farming activities, taking into consideration Government's 
strong policy in preserving the country's fragile eco-system. 
(b) This support is also aimed at lowering the credit financing cost for agricultural producers to 
invest in farming technologies that mitigate the drawbacks of limited arable agricultural lands in 
Seychelles. 
4. Background and authority 
Loan managed by the Small Business Financing Agency under the auspices of the Ministry 
responsible for Finance. 
5. Form 
Loan. 
6. To whom and how the assistance is provided 
The loan is provided to agricultural producers and is disbursed through the Development Bank of 
Seychelles at a preferential rate of 2.5%. 
7. Amount 
A total of 13 loans were disbursed during the fiscal year 2015 amounting 5,420,782. 8. Duration 
This is an ongoing scheme. G/SCM/N/284/SYC 
 
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  9. Statistical data permitting an assessment of the trade effects 
No data available. 
III. LEASE OF AGRICULTURAL LA ND AT PREFERENTIAL RATE 
1. Title of program 
Lease of agricultural land at preferential rate. 2. Period Covered by the notification 
Fiscal year 2015 (i.e. 1 January 2015 - 31 December 2015). 
3. Policy objective and/or purpose 
To assist agricultural producers in obtaining land at affordable prices in order to meet their 
production and sustainable development needs, taking  into consideration the national food security 
agenda. 
4. Background and authority 
The lease is provided under the Ministry responsible for Land Use through the Seychelles 
Agricultural Agency of the Ministry responsible for Agriculture. 
5. Form 
Forgone revenue. 
6. To whom and how the assistance is provided 
The support is provided to agricultural producers that are registered with the Seychelles 
Agricultural Agency and is provided through a preferential rate of SR 6.50/m2 for lease of land for agricultural activities. 
7. Amount 
The revenue forgone in providing this preferential  rate of lease amounted to SR 301,156.41 for the 
fiscal year 2015. 
8. Duration 
This is an ongoing scheme. 9. Statistical data permitting an assessment of the trade effects 
No data available. 
IV. FISCAL INCENTIVES TO DEVELOP AG RICULTURAL AND FISHERIES ECONOMIC 
ACTIVITIES 
1. Title of program 
Agriculture and Fisheries Incentives Act (AFIA). 
2. Period Covered by the notification 
From the enactment of the AFIA in 2005 to October 2014. G/SCM/N/284/SYC 
 
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  3. Policy objective and/or purpose 
Until December 2014, fiscal incentives to develop agriculture and fisheries economic activities were 
provided under the Agriculture and Fisheries Incentive Act (AFIA) (2005). Fiscal concessions were provided to eight main categories: farmers, farming entities, agricultural processors, agricultural 
exporters, fishermen, boat owners, fisheries processors and fisheries exporters as defined in the 
Act. Every relevant person had to register for the purpose of the Act for them to engage in the activity for which incentives are granted under the Act.  
However, following the repeal of the Act, as of 1
st January 2015, the benefits and incentives 
granted under the ACT no longer apply and the different incentives granted to fishermen and farmers are now provided for by different specific laws. The main concessions provided are on taxes (the Value Added Tax) on importation of inputs and other materials and equipments 
necessary for the carrying out of the business. Othe r benefits such as a reduced rate of Business 
Tax are also granted. To encourage businesses towards exporting products, similar benefits as applicable to persons engaged in processing, are al so extended to exporters. The grants of these 
incentives are not contingent on export performance. 
4. Background and authority 
The program is administered by the Ministry resp onsible for Finance, in collaboration with the 
Ministry responsible for Fisheries and Agriculture. 
5. Form 
Forgone revenue. 6. To whom and how the assistance is provided 
Seychelles currently provides non-discriminatory indirect financial incentive to persons engaged in 
the agriculture and fisheries sector through specific  laws. Such incentives take the form of tariff 
concessions on imports by the persons engaged in those sectors.  
To benefit from incentives under the program, businesses have to be licensed by the Seychelles 
Licensing Authority (SLA) and are requested to submit relevant factsheets on their businesses to the Seychelles Revenue Commission (SRC). 
7. Amount 
Seychelles has best endeavored to compile thes e concessionary based statistics, however, the 
country does not have a system in place for registering those specific transactions which has made it problematic to obtain accurate figures. 
8. Duration 
The AFIA 2005 was repealed in October 2014, and the benefits and incentives granted to exporters 
under the Act no longer apply and some of the benefits and incentives granted to fishermen and 
farmers under the AFIA 2005 are now being granted under the following legislation: 
 G/SCM/N/284/SYC 
 
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  Fiscal benefit 
under AFIA 
2005 Relevant section of the 
AFIA providing for the 
fiscal benefits Introduction of the same fiscal benefits 
under other pieces of legislation 
Business Tax Schedule 1 Part 1 and 
Schedule 2 part 1 Benefit under the "AFIA 2005" has been mirrored under the 
"Business Tax Act 2009" 
Good and 
Services Tax (GST) Schedule 1 Part 4 and 
Schedule 2 Part 4 The "Goods and Services Tax Act 2001" had been repealed. 
Note that item 22 of the First Schedule, Part 1 of the "Value Added Tax Act 2010" exempted imports for farming, fisheries and suppo rting activities 
Trades tax Schedule 1 Part 4 and 
Schedule 2 Part 4 Certificate holders -under the "AFIA 2005"- were not 
included as a specific category that benefitted from concessions/exemptions under the "Custom Management 
Act, 2011". Thus, the "AFIA 2005" was being used to grant 
concession. Note that this mainly applied for concessions on importation of motor vehicles as  most imports for the sector 
already attracted a 0% rate of customs duty 
Social Security Act Schedule 1 Part 2 and 
Schedule 2 Part 2 The "Social Security Act 1983" had been repealed. Note that 
concessions has been transferred under the "Income and Non-Monetary Benefits Tax Act, 2010": (Schedule 1 & 2 of the Act) 
Gainful Occupation Permit (GOP) Schedule 1 Part 3 and 
Schedule 2 part 3 The quota for "Maximum Allowable Foreign Employees" 
(MFAE) under the "AFIA 2005" was no longer in application. The MFAE was now dealt with under the legislation governing employment  and immigration. The same applied 
to the GOP fee and no concessi onary rate of GOP is allowed 
Fuel Concessions Schedule 2 Part 5 The tax concessions to the fisheries sector are now being 
provided under the "Excise Tax Act, 2009" 
 
9. Statistical data permitting an assessment of the trade effects 
No data available. 
V. INCENTIVES TO DEVELOP SEYCHELLE S INDUSTRIAL TRADE ZONE (SITZ) 
1. Title of the Program 
Industrial Trade Zone Act, 1995. 2. Period covered by the notification 
2015 3. Policy objective / or purpose 
The policy objective is to provide incentives to attract and develop the country's potential in 
manufacturing, assembling, processing, redistribution activities as well as telecommunication and 
other services. 
The subsidies granted to these licenses, are not contingent on export performance. Any sale of 
products from the Zone constitutes an export from the Zone, even if the goods are sold into the 
"domestic market". Any sale of products from the Zone into the "domestic market" constitutes an import into Seychelles, with all customs formalities and taxes being applicable. 
4. Background and Authority 
The Law is administered by the Financial Services Authority. 5. To whom and how the assistance is provided 
The concessions are provided to businesses/individuals licensed under the Industrial Trade Zone 
Act 1995, operating within an Industrial Trade Zo ne, of which the boundaries are defined by a 
notice in the Gazette as declared by the Minister responsible for Finance. G/SCM/N/284/SYC 
 
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  The benefits are provided through the exemption from  the application of provisions of the following 
national laws as provided for in the Schedule of Industrial Trade Zone Act 1995. 
Exemption from Customs Management Act 2011 for goods imported into the zone, for use by a 
holder of the license, goods dealt with or services provided by a holder of license to a place outside 
Seychelles.  
Exemption from paying contribution to Seychelles Pension Fund and from all of the provisions of 
the Business Tax Act 2009, Licenses Act 2010, Employment Act 1995, Stamp Duty Act 1976, 
Control of Rent and Tenancy Agreement Act 1959. 
6. Form 
Revenue forgone. 7. Amount 
The country does not have a system in place to register the total amount of revenue forgone. 8. Duration 
This is an ongoing scheme. 
9. Statistical data permitting an assessment of the trade effects 
No data available. 
 
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