29 Jun 2010

New export tax welcomed by Vanuatu provinces

5:50 pm on 29 June 2010

Vanuatu's provincial governments are welcoming a new tax on commodity exports.

The central government has announced exporters of a wide range of goods will have to pay two percent of their market value directly to the producing region.

The commodities range from coconut and coffee to beef, sandalwood, kava and logs.

Secretary General of Shefa Province Michel Kalworai says his region has been waiting sixteen years for such a move which will add another three to four million vatu to Shefa's coffers every year and reduce exploitation of resources.

"I can tell you that that it's a dream come true for me as Secretary General of Shefa province and it's a dream come true for Shefa Province. It's a dream come true for all the provinces. It's something we have been waiting for for so long."

Mr Kalworai says the tax will be returned directly to farmers and producers through various government schemes.