President Wavel Ramkalawan, chaired a scheduled meeting of the Cabinet yesterday, Wednesday 21st August in which a number of legal and policy memoranda were approved.
The Cabinet of Ministers has approved implementation of mandatory electronic cash registers and Point of Sale (PoS) systems across various economic sectors effective January 2025. This decision aligns with Government’s aim to enhance transparency and efficiency in business transactions.
The Cabinet of Ministers has approved for the Central Bank of Seychelles (CBS) to initiate the phased sun-setting of cheques, marking a significant step towards modernizing the national payment system. This decision follows a notable decline in cheque usage over the past five years and a concurrent rise in digital payment methods, reflecting a shift in consumer preferences. The CBS will lead this transition by gradually eliminating cheque usage commencing with individuals by 2025 and 2026 for businesses.
The Cabinet of Ministers has approved amendments to the National Payment System (Licensing and Authorization) Regulations 2014, aimed at modernising the payment landscape and aligning it with international standards and best practices. The amendments introduce new criteria for licensing and authorization, including requirements that applications align with national interests and adhere to both the NPSR and Securities Act. Enhanced measures for fraud prevention, data security, and business continuity for Payment Service Providers and Operators are also part of the revised regulations. These changes support a more secure, efficient, and transparent payment system, fostering the growth of electronic transactions and facilitating the country's transition towards a cash-lite economy.
The Cabinet of Ministers has approved a series of key reforms to the Securities Act, 2007, aimed at enhancing the regulation and compliance of Seychelles' securities sector in response to market developments and emerging risks. The reforms will strengthen Seychelles' legal and operational framework, align it with international standards, and boost the country’s reputation as a credible international financial services center, thereby promoting investor confidence and maintaining its competitiveness globally.
The Cabinet of Ministers has approved the signing and adoption of the Multilateral Instrument (MLI) for the implementation of the Pillar Two Subject to Tax Rule (STTR), as developed by the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS). This decision enables Seychelles to amend its existing bilateral tax treaties to allow the imposition of an additional tax on certain cross-border payments not subject to a minimum tax rate of 9% in the recipient's country. The adoption of the STTR MLI will help Seychelles protect its tax base, support international efforts to combat tax avoidance, and align with global standards on tax transparency and fairness. Cabinet's approval reaffirms Seychelles' commitment to international tax reform and its participation in the global effort to address tax challenges in the digitalized economy.
Relevant Ministries will provide details