By Loretta B Manele
Manasseh Sogavare, minister of finance and treasury spoke on how the government manages tax and duty exemption in parliament yesterday.
He said this has been a subject of public of debate within and outside parliament recently.
“I know that the question is noticed by the Leader of the Opposition on this paper, requesting a statistical data on the value of the exemptions granted, whom granted and the dates the exemptions were granted in 2024 up to 31st October”
Sogavare said on the requirement for the government to be transparent and accountable for the administration of the exemption regime, he needs to inform the house that the Regulations 32, 33 and 34 of the Revenue and Customs Exemption Committee in the Non-Statutory Exemption Regulations 2013 made pursuant to Section 81 of the Customs and Excise Act, that require the release of prescribed information, both by the minister, the Exemption Committee and the Control of Customs and Exercise.
“To prescribe the method of such release, which does not include entertaining a question on the floor about that method”
Sogavare said the regulations 32 require the minister to release the precise information or certain elements of the information that is requested by the Leader of Opposition requesting, by way of a quarterly public gazette, contrary to the way the Leader of the Opposition is requesting transparency and accountability by way of a question on the floor about it.
He also stated that he draws attention of the house on standing orders 12-1-K, which makes the following claim and he quotes,
“A question shall not be asked seeking information which can be found in accessible documents or ordinary works of reference”
Sogavare said the Leader of the Opposition and anyone for that matter can access the published gazette to access this information.
“Therefore, the question noticed by the Leader of the Opposition on this matter may be out of order”
Sogavare said the release of information by the Exemption Committee under Regulation 33-1, by way of an annual report to the Public Accounts Committee protects the identity of the recipients, as follows and quotes.
“The Exemption Committee shall provide annual information to the Public Accounts Committee on the nature and cost of all tax and duty exemptions granted in the previous fiscal year”
He stated that under regulation 33-2 it reads as follows.
“In that regard, the information provided by the Exemption Committee will not include names by the means of identifying individual recipients”
Sogavare said the latest report submitted is with the Chairman of the Public Accounts Committee.
He stressed that the reason for this prohibition is in line with international best tax practice and is to protect our taxpayers who enjoy a fiduciary relationship with the Commission of the Inland Revenue and Control of Customs in all matters concerning their tax affairs.
Sogavare added there is also the obligation to protect a fiduciary relationship which functions on mutual trust and confidence and it is clear that we cannot discuss names of taxpayers in this house.
He said the fiduciary relationship between the taxpayers and the tax authority is one thing and importantly, for the simple fact that they cannot defend themselves on the floor of parliament against racist references and other incautious references that may be made against them on the floor of parliament.
