-Finance Minister Ramofafia maintains claim of revoking tax exemption the next day
-Govt announces revocation, publishing order
-Opposition not buying it
-Many other 100% tax exemptions issued on April 24 & 27 worth millions
BY IRWIN ANGIKI
Government says it has officially revoked the tax exemption previously awarded to BS Pacific Resources on fuel import prices.
This followed public outcry after Island Sun reported that the GNUT government had granted exemption to BS Pacific Resources, a business with known connections to GNUT.
Opposition Leader Matthew Wale has labelled GNUT’s action as ‘favouritism, incompetence and backroom dealing’.
This 100 percent tax exemption, which Finance Minister Rexon Ramofafia granted on Thursday, April 23, was for 4.5 million litres of fuel, and represented foregone government revenue estimated to be more than $6 million.
Mr Ramofafia had told Island Sun on Sunday, April 26, that he had revoked that tax exemption the next day, Friday, April 24.
BS Pacific Resource told Island Sun in an interview on Monday, April 27, that it had received the tax exemption the same day Minister Ramofafia signed it (ie. Thursday, April 23) but has not received the revocation letter on its purported date of signing (ie. Friday, April 24).
Ramofafia speaking to Island Sun yesterday insisted that he had signed the revocation letter on Friday, April 24, but did not know why it had not reached the company.
He expressed surprise how the company could receive the tax exemption document on the day it was signed, and not the revocation letter.
Official announcement of the revocation
Government Communication Unit (GCU) announced the revocation yesterday with a photo of the revocation order showing the document to be signed on Friday, April 24.
This decision was made after careful review and evaluation to ensure alignment with national interests and established policies, the statement by GCU yesterday said.
Minister Ramofafia had acted promptly to revoke the exemption, guided by principles of fairness, transparency, and good governance, GCU said.
“While Government retains the prerogative to grant tax exemptions to local companies, such decisions are made following careful case-by-case review and evaluation to ensure alignment with national interests and established policies.
“The government remains committed to managing current fuel price increases. The revocation order, which took effect on April 24, now resolves public concerns raised recently on social media,” GCU statement said.
I had revoked it the next day: Ramofafia
Ramofafia had told Island Sun on Sunday (April 26) when the paper sought him for comments that he had signed the tax exemption on Thursday, but then revoked it the next day.
He assured Island Sun that he would send a copy of the revocation order on Monday, April 27, but never did.
Island Sun sent him reminders on Monday via email and phone but no response.
Yesterday (Tuesday, April 28) morning the PM Press Secretariat sent a photo of the revocation order to Island Sun.
Ramofafia later called Island Sun expressing disappointment at his image being tarnished by the media articles on this issue.
He reiterated that he had signed the revocation on Friday, April 24.
“I revoked it on Friday, because I know it was on Thursday that one happened and me myself, how I do things, if something I do and I am not comfortable with, means it’s [not good], so after I signed it I myself, on my own conviction, the next day I revoked it.”
Another reason Ramofafia said he had revoked his tax exemption for BS Pacific Resources was because he deemed it unfair.
“Another reason I revoked it too was because it was not fair on everyone,” Ramofafia said.
When asked why he had not provided a copy of the revocation order on Monday to Island Sun as he had promised, Ramofafia said he was out of office and that he was not using his official email address, rather was using a private gmail address which was unknown to Island Sun.
Ramofafia also questioned Island Sun’s sources within the Finance Ministry saying that he believed some officers in his ministry were working against him.
“I think it has something to do with my officials too, because I believe this is some kind of move to tarnish me,” Ramofafia explained why the exemption documents were quick to reach the recipient while the revocation order did not.
Opposition not buying it
Opposition Leader Wale doubts that Finance Minister Ramofafia had revoked the tax exemption the next day, describing the situation as ‘a clear case of damage control after exposure’.
“They acted first and reversed the decision after being exposed. It will not be a surprise a revocation letter will be back dated to cover their tracks,” Wale said.
“If this was not exposed, it would have gone through. That is the truth,” he said.
Wale said the exemptions are not new traits by the current GNUT.
The last time the exemptions by the former finance minister, Manasseh Sogavare, were leaked by the current finance minister, it was a ploy to get him the top job, Wale said.
“This looks exactly like preferential treatment for a political financier followed by a failed attempt to clean up lies.
“This is not governance. This is a rushed cover up after millions in concession to a politically connected beneficiary was brought to light,” Wale said.
GNUT issued many 100 percent tax exemptions on April 24
Meanwhile, Island Sun understands that many other 100 percent tax exemptions were given by GNUT on April 24 and Monday this week worth millions.
For example, 10 dump trucks worth $13.5 million in which government lost customs duties (10 percent) and goods tax (19.5 percent) totalling $3.97 million.
Another 100 percent tax exemption for 343 machines worth $107,304,241 with customs duties and goods tax totalling $31.6 million.
Another exemption for 10 pick-up trucks worth $1.6 million with customs duties and goods tax totalling $479,077.
Other exemptions for machinery parts worth nearly $200,000, with customs duties and goods tax totalling $54,843.
Island Sun will publish a full report on this soon.
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