BY INDY MAEALASIA
FINANCE Minister Manasseh Sogavare has refuted allegations regarding a controversial $29 million tax exemption granted to Wan Chen Company Limited, accusing the opposition and media of misleading the public with half-truths and political rhetoric.
In a press conference yesterday, Sogavare clarified that the exemption was intended to boost critical infrastructure projects, necessary for the country’s development.
In response, the finance minister explained that the company had proposed an investment in a wharf and warehousing upgrade of $40.9 million and $52.2 million in apartment and resort projects, bringing the total investment to $94 million.
Sogavare stated that the former finance minister granted tax and duty exemptions amounting to $29 million under two specific orders (0122-24 and 0125-24) on February 26, 2024, just before the national general election.
Following the government formation in early May and his appointment as finance minister, he was directed to issue new orders,
“On taking up the post, the exemption committee recommended that the minister issue new orders on the same exemption, replacing the orders mentioned, which is reviewable every six months,” Sogavare said.
He stressed that the orders will expire this November, allowing the government to review the implementation of the exemption, “that’s how it works.” Sogavare said.
The finance minister said that to adhere to current reviewing of exemptions, he has advised the company to submit a full report on the utilization of the exemptions to justify any extensions.
The finance minister claimed that these exemptions were “hardly utilized” and emphasized they have “very minimal loss of revenue.”
Regarding the proposed tourist resort, Sogavare clarified that the company was still in the process of backfilling the project site
“They have yet to import the materials required for the resort. Some works are going on the construction of the wharf and warehouse at the Ranadi compound,” he said.
Sogavare emphasized that attracting investors for critical infrastructure projects is essential for boosting the tourism sector.
“As the Minister of Finance, my duty is to ensure that government achieves its objective,” he stated
To demonstrate the government’s seriousness commitment, Sogavare said the Ministry of Culture and Tourism budget will increase in 2025.
“This is to properly coordinate the development of this sector. This is how serious the government is. Now going forward, of course, as Minister of Finance, I also have the duty to protect government revenue,” he added.
Late last week Opposition came out with two episodes of revelations in which it produced documents showing government tax exemptions to few businesses totalling in the millions.
One Chinese business was granted $29 million in tax exemption, the documents showed.
Opposition criticised government over this saying that Finance Minister Sogavare had told parliament in June this year that he would halt all tax exemptions, which he described as a source of leak in the government’s revenue coffers.
Opposition’s revelations show that government is doing otherwise, continuing with its habit of issuing tax exemptions left and right, and secretly, to businesses it favours.










