28 Jun 2013

Tonga parliament passes budget

5:54 pm on 28 June 2013

Tonga's MPs have passsed the budget, the largest in the country's history, at 192 million US dollars and more than half of it is coming from foreign aid.

Matangi Tonga also reports the Income Tax Act has been amended with the aim of bringing foreign consultants working in Tonga under the tax net.

The amendment will allow the government to tax foreigners who are paid for work that they do in Tonga, including those who could be in the country for less than 90 days at a time.

The Deputy Prime Minister Samiu Vaipulu told the House, the Bill targeted consultants whom he says are paid huge amounts out of the millions of dollars provided for aid projects.