14 Dec 2005

There's support in Solomon Islands for reform of tax system

3:16 pm on 14 December 2005

There is support in Solomon Islands for a reform of the country's tax system.

The deputy commissioner of Inland Revenue, Michael Hewetson, says businesses have complained of facing high costs, and complex rules and regulations, while their administration has been open to interpretation.

He says the Finance Ministry has put forward proposals that include a single rate of import duties, the removal of many import duty exemptions, the introduction of a value-added tax, and possible income tax reforms.

Mr Hewetson says businesses are keen to see the reforms but there will be further consultation with the private sector, as well as civil society and rural areas before they're implemented.

"Clearly, nothing's off the table. I think we want to actually engage and say what does the future shape of a tax system for the Solomon Islands look like, going forward. There are also some changes in respect of both the Customs Act and the Income Tax Act that the government will also want to look at."

Michael Hewetson, Inland Revenue's deputy commissioner.