5 Feb 2016

Tonga to look at halving foreign exchange levy

6:04 pm on 5 February 2016

An amendment to the Tonga government's proposed levy on foreign exchange earnings is to be tabled in parliament soon.

The proposed levy which was set at 1 seniti per 1 pa'anga for every foreign exchange transaction was to help fund the 2019 Pacific Games.

The levy proposal sparked protests from the financial sector.

Now the finance minister 'Aisake Eke, has told parliament that an amendment will soon be submitted to the House for the proposed levy to be cut in half.

Tonga money 2012

Photo: Supplied

Radio Tonga reports Dr Eke said if parliament approves the amendment it will be effective this month.

Last year the House approved a 100 pa'anga departure tax on each passenger and a 1 seniti levy from the profit of foreign exchange of commercial banks.

The Association of Banks in Tonga had challenged this, and instead recommended other foreign exchange agencies be included in the levy apart from commercial banks.