By Loretta B Manele
I informed parliament that I initiated some measures to improve the consideration of applications for exemptions by the Exemption Committee.
Manasseh Sogavare, minister for finance and treasury made the statement during the Sine Die motion on Wednesday 18 of December, in parliament.
Going forward, he said he has directed that the content and structure of the committee’s recommendations will need to be improved in the following areas.
“On mining, the new mining tax clauses, this is a specific area that I informed parliament that I will be looking into that of my statement to parliament earlier this year”
He stated that as they speak, all mining tax MOUs and agreements are being reviewed.
In this regard, Sogavare said work on this exercise is progressing very well with the Economic Reform Unit which is working with the Commissioner of Inland Revenue, Controller of Customs and the Attorney General’s Office.
Another area is the consideration of exemption applications.
Sogavare said satisfying the qualification to be considered for exemption criteria, applicants must fully justify the reason why they requested 100 percent exemptions and general expressions of financial hardship is inadequate.
He added that applicants must provide empirical evidence that the business will not operate profitably without the granting of the exemptions.
Moreover, Sogavare also stated that the minister can approve the application, reject it or grant part of the request.
He explained that in order for the minister to make an informed decision, the recommendations must fully justify the reason based on the analysis of the relevant documents of the applicant including projected financial statements.
Sogavare said recommendations to the minister must prove that all the relevant information and documents are fully analysed to justify the recommendations.
He said they are also looking at active monitoring of the utilization of the exemptions granted.
Sogavare emphasized that the requirement of the proper utilization of the assistance is just as serious as budgetary assistance.
