By Loretta B Manele

Peter Shanel Agovaka, foreign affairs minister said tax exemptions are provided for by two laws; the income tax act, section 16 and the goods tax act, section 37.

He spoke about this during the recent Sine Die Motion debate in parliament last month.

Agovaka said there is nothing illegal or unlawful about tax exemptions.

The member of parliament for Central Guadalcanal constituency explained that in any country, tax exemption is made into law provided for government to use for business houses, investors, schools, hospitals, churches and communities.

“So, the exemption is provided for by law”

In relation, he said the only thing he wants to the minister of finance to do is to bring forth the issue he talked about regarding constituencies.

“He talked about some constituencies which applied for tax exemptions and then had swung it around and converted it into some kind of funds”

He added that this is fraudulent use of exemptions by the constituencies.

Agovaka noted that the finance minister needs to get the auditor general to audit those accounts and bring to light the issue he raised on the floor of parliament.