Sogavare defends 100 percent tax exemption for XHHL, blasts critics for political instability
BY NED GAGAHE
Finance Minister Manasseh Sogavare has fiercely defended his recent decision to grant a 100% tax exemption to Chinese company Xiao’s Henderson Hotel Limited (XHHL), rejecting criticism from various quarters.
Sogavare expressed his frustration with those questioning the exemption, accusing them of attempting to cause political instability in the country.
In an interview with the Island Sun, Sogavare stated that tax exemptions are a form of indirect government assistance to investors and that there is nothing wrong with the government supporting those contributing to the country’s development.
“Exemption is similar to government direct assistance; it is indirect, budgetary assistance to the investor,” he explained.
He added that the government has a serious responsibility to ensure that exemptions are properly used by recipients.
Sogavare was particularly upset by the criticisms directed at his decision, stating that anyone who disagreed likely did not understand the reality of the country’s needs or the government’s policies.
“There’s nothing wrong with the government assisting investors in this country. Nothing wrong whatsoever,” Sogavare said.
“So, anyone who complains about this, you probably live up in the moon. You live somewhere you don’t know what is happening in this country.”
The Finance Minister also took aim at some of his fellow ministers, suggesting that they may not fully understand the government’s policies or the role of foreign investment.
“These ministers and people who put forward these demands don’t even know the policy of their own government, the GNUT government,” he remarked.
Sogavare reiterated the importance of supporting investors, particularly in sectors that contribute to job creation and the broader economic growth of the country.
He expressed deep concern about the political motives behind the criticisms, accusing those behind the opposition of trying to destabilize the government.
“I am really upset and concerned about the people who came up with this issue and criticize the government to cause political instability,” Sogavare concluded, firmly standing by his decision to assist foreign investors like XHHL.
