BY IRWIN ANGIKI
While fuel prices are soaring, GNUT is selectively assisting certain businesses ‘friendly’ to it by granting them tax exemption.
Finance Minister Rexon Ramofafia on Thursday last week signed a 100 percent tax exemption for 4.5 million litres of petrol and diesel for BS Pacific Resources.
Government is set to lose more than $6 million in taxes, since GST is 15 percent, due to this exemption.
Mr Ramofafia told Island Sun last night he had revoked that tax exemption the next day.
But, this is not new. GNUT government is well-known for issuing out tax exemptions left and right to ‘friendly’ businesses.
3,600,000 litres of Diesel and 900,000 litres of Petrol is exempted tax by the instrument signed by Finance Minister Ramofafia for BS Pacific Resources.
This is equivalent to more than six months worth of fuel. Major fuel stations in Honiara on average sell out 200,000 litres of fuel per week.
BS Pacific Resources is a business name and not incorporated as a company, Company Haus records show. It’s addressed at Supreme Plaza, Kukum Highway, Honiara.
BS Pacific Resources is known to have connections with GNUT government and deputy prime minister Manasseh Sogavare.
Mr Sogavare had granted BS Pacific Resources few tax exemptions when he was the finance minister for GNUT including tax exemptions for six dump trucks on March 11, 2025 totalling more than $325-thousand.
The latest tax exemption by Finance Minister Ramofafia is estimated to give BS Pacific Resources as a gas station more than $10 million in clear profit.
Ramofafia, speaking to Island Sun last night was shocked that media had a copy of the tax exemption.
“I had cancelled that tax exemption on Friday. A lot of fuel stations had applied for tax exemption.
“After signing the tax exemption, I later realised that it is not good to just give tax exemption to just one company since a lot of them had applied for tax exemption. So I cancelled it.
“Only Markwarth and SP Oil have been granted tax exemption under GNUT strategy. We will issue a press release on it,” Ramofafia said.
“I am surprised why the tax exemption is quick to reach media, although these companies who get exemptions have not received it yet,” Ramofafia said.
“The tax exemption for BS Pacific Resources will not be effective because I revoked it the next day,” Ramofafia said.
BS Pacific Resources is reportedly connected to the BSP gas station on Auki, Malaita province, which sells at $15 per litre for petrol, and $14 per litre for diesel.
BS Pacific Resources is a business name registered to Rabataua Tarakabu, according to Company Haus records.
Tarakabu has not responded to attempts for comments by Island Sun.
Business pundits have reacted with shock to GNUT’s tax exemption for the 4.5 million litres of fuel to a business name.
“It makes no sense as to how the government would possibly even consider tax rebates based on an application from a business name. It just makes no sense,” one business person said.
“A business name would normally be used by a sole trader, an individual. Most trading companies of any type of volume would be using a company structure because the tax rate’s 30 percent as opposed to an individual which will be in excess of 40 percent,” another business person said.
“So, it makes no sense to have a business name as a company structure for any business of any repute or scale. So, to me, the concept of a business name operating and using 4.5 million or 5 million litres of fuel doesn’t sound right.”
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