BY NED GAGAHE
Tax exemptions for Solomon Islands’ investors is set to have an improved mechanism of accountability and transparency.
In an exclusive interview with Island Sun yesterday, Minister for Finance and Treasury, Manasseh Sogavare, announced new measures aimed at improving the decision-making process for tax exemptions granted to investors in the Solomon Islands.
Sogavare emphasized the need for stricter monitoring and accountability, following concerns over the use of tax exemptions.
The Minister revealed that he has issued a comprehensive 16-page set of instructions to the Exemption Committee, outlining how they should assist him in making informed decisions regarding exemptions.
“All the fixing will be coming here, under the new instructions we have given them,” Sogavare said.
“This is a full 16-page instruction to improve the way the minister is assisted in making these decisions. They must continue to monitor exemptions.”
Sogavare made it clear that if the Exemption Committee fails to carry out its responsibilities effectively, he will take action.
“If they are not doing their job, I can move and slash off the exemptions granted,” he warned.
The Minister stressed that tax exemptions are a form of indirect budgetary assistance to investors, and the government holds a serious responsibility to ensure these exemptions are being properly utilized.
“There’s nothing wrong with the government assisting investors in this country. Nothing wrong whatsoever,” Sogavare stated.
“Anyone who complains about this, you’re probably living up in the moon. You don’t know what’s happening in this country.”
Sogavare also expressed frustration with those who have criticized the government’s policies on exemptions, especially those who may not fully understand the government’s stance on supporting investment.
“These ministers, and people who put out these demands, don’t even know the policy of their government. The GNUT government is here to support investors,” he said.
The Minister’s comments come amid mounting debate about the government’s practice of granting tax exemptions to foreign investors, including a recent case leaked in social media this week where Xiao’s Henderson Hotel Ltd, a Chinese developer, received more than $15.2 million in exemptions.
The exemptions have sparked discussions about the fairness and transparency of such policies, as well as concerns about the long-term implications for public revenue.
Despite the criticisms, Sogavare remained firm in his stance that supporting investors is critical to the country’s economic development.
He reiterated the government’s commitment to fostering a favorable environment for investment and emphasized the role of the Exemption Committee in ensuring that the country’s resources are being used effectively.
“We are here to support investors. I am really upset and concerned about the people who came up with this issue and criticize the government to cause political instability.” Sogavare said.
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