GOVERNMENT LIED TO JUSTIFY TAX INCREASE ON FUEL!
Le Nouveau Seychelles Weekly can sensationally revealed that the government lied when they used the increase in the price of oil on the international market as justification to increase taxes on petrol and diesel here by as much as 7 rupees on each litre of petrol and diesel purchased at the pump. It is to be remembered that not so long ago, in a well orchestrated plan, both Captain Guy Adam of Seypec and Ahmed Afif, the Principal Secretary in the Ministry of Finance, were consecutively sent on SBC television to psychologically prepare the nation for the increase in taxes on fuel. Both Adam and Afif used the increase in the international price of a barrel of crude oil as the justification to increase taxes here. However, if President James Alix Michel is to be believed, Seypec has, in the past 10 years tripled its turn over from the sale of both petrol and diesel. Logically, this means that Seypec has paid government more, not less, dividends. The statement by Afif that the government has lost SCR.77, 000, 000 in revenue last year alone, was not and could not have been due to the fact that the government was subsidizing the price of fuel at the pump. In fact, Seypec had a turn over of SCR. 428, 000, 000 in 1997 and this increased to SCR. 1.6 billion in 2006. This comes from the mouth of President James Alix Michel himself. The increase in taxes on the price of fuel announced recently is definitely not justifiable. This is what the President stated on the 20th March 2007, in his State of the Nation address delivered before the National Assembly:
“Several developments in 2006 have enabled us to take further steps towards an industry that can potentially create a lot of wealth for our country.
Advanced exploration is continuing in our EEZ; the data collated indicating the correct geological picture for oil extraction.
The potential is there, but any resource means nothing unless you have the means to ensure efficient management. I am proud that our national petroleum company-SEPEC- has already proves its credentials as a key actor in our country’s development. Its annual turnover has tripled in the last 10 years from SCR428 million in 1997 to more than SCR1.6 billion in 2006.
Our tanker programme is progressing well and bringing benefits to the country. Currently, 46 young Seychellois are flying the flag aboard the Seychelles Pride, Seychelles Pioneer and Seychelles Progress at various ports around the world. The training of these young Seychellois has in the large part been ensured through Government and SEPEC.
Our fourth ship, Seychelles Prelude will be delivered in December 2007, and the Seychelles Patriot, fifth member of the fleet will be delivered in March 2008.
In the next ten years, in addition to our potential of striking oil, Government in collaboration with SEPEC will continue to develop the necessary infrastructure to optimize the potential of the Sector including storage services, bunkering, distribution of petroleum in the region and re-exportation around the world.”
The people of Seychelles, therefore, have every reason to be enraged by the shenanigan which was orchestrated by the government in its quest to raise taxes on fuel. Countries like South Africa, for example, has reduced, not increased, the price of fuel at the pump. It is inexplicable therefore, why a country like Seychelles has seen it proper to do the opposite. It is clear that the government was being less than candid about the real reason behind the increase in taxes. Since Seypec is making more, and not less, money from the sale or re-sale of fuel, the only logical conclusion is that the government was being economical with the truth when they blamed the increase in taxes on the increase of a barrel of crude oil on international world market.
