BY JOHN HOUANIHAU
The Ministry of Finance and Treasury (MoFT) and the Government Legal Draftsperson appeared before the Bills and Legislation Committee (BLC) yesterday to commence inquiry into the Value Added Tax Bill 2025.
This bill is a key piece of legislation that aims to reform and modernise the country’s tax system, the National Parliament media unit confirmed yesterday.
The objective of the bill is to simplify and modernise the arrangements for the imposition and collection of tax on the consumption of goods and services in Solomon Islands, according to the media statement.
The proposed legislation seeks to repeal the current tax framework and introduce a Value Added Tax (VAT) system that aligns with tax regimes used across the Pacific region and internationally.
If enacted, the bill will repeal the Goods Tax Act (Cap.122), Sales Tax Act (Cap.125), and Stamp Duties Act (Cap.126), replacing them with the proposed VAT system, parliament media said.
The legislation forms part of Solomon Islands’ broader tax reform programme that began in 2007.
As part of related reforms through separate legislative processes, most import duties may be reduced except for those applied to motor vehicles, fuel, alcoholic beverages, sugary drinks, selected plastics and tobacco.
The current accommodation levy on tourist accommodation may also be removed, the media statement said.
However, following initial discussions, the committee adjourned the hearing to a later date, either Friday this week or another date that is yet to be confirmed.
The media statement said the adjournment will allow the ministry to provide additional technical information through a detailed presentation to assist the committee’s deliberations.
Officials from the ministry also informed the committee that they intend to conduct a workshop for all 50 Members of Parliament to ensure they fully understand the technical aspects of the proposed legislation before the committee resumes its hearings.
The committee will also invite a range of stakeholders to appear before it at a later date. These include the Central Bank of Solomon Islands, the Solomon Islands Chamber of Commerce and Industry (SICCI), Our Telekom, commercial banks, the Chinese Association, the Solomon Islands Bar Association (SIBA), the Solomon Islands National Provident Fund (SINPF), the Economic Association of Solomon Islands (EASI), State Owned Enterprises, tourism operators, the Guadalcanal Provincial Government, and the Honiara City Council (HCC).
Photo credit: Supplied
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