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Seychelles imposes tourism environmental sustainability levy on accommodation

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Seychelles will impose a tourism environmental sustainability levy from August 1 as per the structure announced by the Ministry of Finance, National Planning, and Trade. The regulations governing the levy were gazetted and will be charged on a three-tiered basis.

Seychelles will impose a tourism environmental sustainability levy from August 1 as per the structure announced by the Ministry of Finance, National Planning, and Trade. The regulations governing the levy were gazetted and will be charged on a three-tiered basis.

Small tourism accommodations of 1-24 rooms will be required to charge visitors SCR25 ($2) per person per night, medium tourism accommodations of 25-50 rooms – SCR75 ($6) per person per night, and large tourism accommodations of 51 rooms and above, yachts and island resorts – SCR 100($8) per person per night. Island resorts relate to establishments based on any island other than Mahe, Praslin, and La Digue, the three most populated islands, and Cerf Island as defined in the Tourism Development Act 2019. Establishments will charge and collect this levy from the visitors.

The Levy is not to be incorporated in the establishments’ prices. Instead, they are required to include it on the visitor’s invoice as the Tourism Environmental Sustainability Levy. The establishments will then be required to remit these funds to the Seychelles Revenue Commission (SRC) every month. The levy amount shall not be considered as part of the turnover of a business to determine business tax, value-added tax (VAT), accommodation turnover tax, or tourism marketing tax (TMT).

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https://trendsnafrica.com/seychelles-to-develop-a-national-grading-system-for-tourism-establishments/

https://trendsnafrica.com/two-more-seychelles-islands-open-for-new-hotel-development/

The levy does not apply to Seychellois citizens and residents of Seychelles, children of 12 years and below, and crew members of airlines and yachts.  The announcement comes four days after Seychelles’ finance authorities said it will undertake further discussions with the Cabinet of Ministers on the environment levy amid concerns of tourism establishments on the proposed collection method.

Proceeds from the levy would add to the country’s efforts to enhance, rehabilitate and protect its natural environment. The levy was first announced during the 2023 budget speech. Following the budget address, three separate consultative meetings were held with tourism stakeholders. These were followed by further meetings with the Seychelles Hospitality and Tourism Association (SHTA).