Trade Union council urges Finance Minister not to hide behind Tax Exemption board and simply halt all tax exemptions
The trade union has weighed in on government’s tax exemption mess urging the finance minister not to hide behind the exemption board and to cease all exemptions – period.
In a statement yesterday the Solomon Islands Council of Trade Unions (SICTU) conveyed deep concern regarding recent events surrounding tax exemptions by GNUT government.
“During a press conference, the Finance Minister mentioned that all tax exemptions he approved were also endorsed by the Tax Exemption Board under his purview,” the statement said.
“However, SICTU remains sceptical of this explanation and is troubled by the potential impacts of the minister’s actions on the economy and the people of the Solomon Islands.”
Opposition last week came out with revelations of tax exemptions by government from January to September this year worth millions of dollars.
Finance Minister Manasseh Sogavare was the centre of criticisms because he had announced in the floor of parliament in June this year that he would halt all tax exemptions, citing that they were a source of leakage to government revenue.
Opposition’s revelations showed that Finance Minister Sogavare carried on and granted exemptions after his June announcement.
Sogavare in response held a press conference on Sunday (Nov 10) where he condemned the Opposition and media accusing them of propagating misleading information.
He notably however did not disprove the revelations by the Opposition.
“It has come to light that the Minister of Finance signed off on tax exemptions amounting to millions of dollars, citing approval from the tax exemption board,” the SICTU statement yesterday said.
“This perceived use of the board as a shield for the minister’s discretionary powers has led to distress and disappointment among workers nationwide and the general populace.”
SICTU called upon the Minister of Finance and Treasury to uphold the commitment made to the people of the Solomon Islands by immediately ceasing all tax exemptions, as pledged in parliament, the statement added.
“SICTU urges the Minister of Finance and Treasury to reassess their stance on tax exemptions and prioritise the interests of the people and the Solomon Islands’ economy.
“As representatives of the majority of workers in both the public and private sectors, SICTU takes its responsibility seriously in shedding light on recent efforts by the Minister of Finance to justify the continued granting of tax exemptions.
“Despite the government’s challenges in providing essential services to workers and the public, we firmly assert that the minister must keep his promise to the public by halting all tax exemptions and focusing on the well-being of the people above individual interests.
“Recent statements from the Minister of Finance attempting to shift blame onto the tax exemption board do not absolve him of responsibility.
“Accountability begins at the top, and it is the minister’s duty to ensure the proper collection of revenue. “Rather than deflecting fault, the minister should take definitive action to fulfill his pledge to the public by suspending all tax exemptions until basic services are accessible to all workers and citizens.”
