Sogavare reaffirms commitment to improving tax and duty exemptions

BY LORETTA B. MANELE

Manasseh Sogavare, Minister for Finance and Treasury (MoFT), has reaffirmed his commitment to improving the administration of the tax and duty exemptions regime.

Speaking in parliament yesterday, Sogavare addressed what he described as a “widely debated view” circulating on social media and within political circles on both sides of the house, alleging that he had backtracked on his commitment to granting exemptions.

“I have not erred one bit. I am still committed to improving the administration of the tax and duty exemptions regime,” Sogavare stated firmly.

The minister highlighted that he had already informed parliament of his intention to review tax clauses in all mining agreements, and this review is progressing well.

He explained that the purpose of the review is to align tax incentives with the country’s tax laws and international best practices, ensuring greater clarity and effectiveness in their application.

To this end, Sogavare noted that the Economic Reform Unit within his ministry is collaborating closely with the Attorney General’s Office and the Ministry of Mines to draft proposed standard clauses for negotiation with mining companies.

“I understand that this work is nearing completion,” he added.

Sogavare also indicated that new clauses would be incorporated into existing mining agreements, requiring the government to engage in renegotiations with mining companies to implement the changes.