– Maneniaru questions holdup as Bill awaits Cabinet approval
BY NED GAGAHE
Member of Parliament (MP) for West Are’Are, John Maneniaru, is calling for urgent action on the long-awaited Value Added Tax (VAT) Bill, which has been stuck waiting for Cabinet approval.
In a statement, Maneniaru who is also the Chairman of Parliamentary Bills and Legislative Committee (BLC), said the legal checks on the Bill have already been completed and questions why it is still being delayed.
Maneniaru said passing the VAT Bill will boost government revenue, support the economy and demonstrate genuine commitment to national development.
VAT is a broad-based tax on most goods and services, aimed at taxing final consumption through a staged collection process by businesses.
It is a tax on the value added to a product or service as it flows through the supply chain.
Maneniaru said the VAT Bill, initially expected to be tabled in Parliament in 2023, has already passed through legal clearance by the Attorney General’s Chambers and now awaits submission to Cabinet by the Minister for Finance and Treasury.
“This Bill has cleared the legal process. It is now ready for the next step. It will be helpful to understand what remains to be done before it is brought before Cabinet,” Maneniaru said.
The BLC Chair highlighted the importance of the VAT Bill, particularly given the government’s stated commitment to strengthening domestic revenue and ensuring fiscal sustainability.
“This is an important piece of legislation. If well designed and implemented, the VAT Bill can contribute meaningfully to revenue mobilisation and long-term economic resilience,” Maneniaru said.
In May 2025, Minister for Finance and Treasury, Harry Kuma told Parliament that the ministry was implementing a comprehensive tax reform agenda aimed at modernizing the country’s tax system to improve the business environment and support economic growth.
The reform is being rolled out in phases and Phase 1 focuses on the Tax Administration Act and the VAT.
Kuma said the Tax Administration Act was passed in 2022 and came into effect on 1 January, 2023. It streamlines the administration of various tax laws under the Commissioner of Inland Revenue and updates several existing tax acts.
Minister Kuma said the VAT Bill is expected to be introduced in Parliament by mid-2025.
He said the first phase is nearing completion, with the VAT bill currently awaiting Cabinet approval.
Minister Kuma adds that phase 2 involves a rewrite of the Income Tax Act.
“Work has started, with Cabinet already approving key policy directions in 2024. The Economic Reform Unit, along with ADB advisers, is now developing a policy paper for this phase.” Kuma said.
Meanwhile, the MP for West Are’Are noted the rising public interest in the Bill and called for more transparency about its progress.
“Given the significance of the Bill and the public interest in tax reforms, it would be helpful for the minister to provide an update. The public deserves to know where things stand,” Maneniaru said.
He concluded by encouraging responsible authorities to give the matter due attention.
“This is an important part of our national development agenda. Progressing the VAT Bill in a timely and transparent manner will be a positive step forward,” Maneniaru said.
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