14 Dec 2005

Consultation to be carried out in Solomon Islands over tax reform

4:13 pm on 14 December 2005

There is to be consultation over the planned reform of the Solomon Islands tax system.

The Finance Ministry has put forward a raft of 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.

The chairman of the ministry's tax reform working group, Harry Kuma, says the private sector and others will be consulted before the reforms are adopted or implemented.

Mr Kuma says they've identified what they consider their first priority.

"Reforming the current indirect tax system which comprises the goods tax and the sales tax. Those two taxes as far as we see, are really hurting the businesses. And, in place of that, what we have on the table, is a value-added tax, or consumption-based tax."

Harry Kuma, chairman of the Solomon Islands Finance ministry's tax reform working group.