BY NED GAGAHE
The Workers’ Union of Solomon Islands (WUSI) calls on the government to delay the tabling of the proposed Value Added Tax (VAT) Bill currently before the Bills and Legislation Committee.
In a strongly worded statement, WUSI and the Solomon Islands Council of Trade Unions (SICTU) President Tony Kagovai urges the government to conduct broader public consultation and engage meaningfully with worker representatives before proceeding on with the legislation.
The union warns that if passed in its current form, the VAT Bill will place significant financial pressure on ordinary Solomon Islanders, particularly low-income earners, middle-class families and small business owners who are already struggling with rising costs of living.
WUSI said workers across the country must be made aware of the potential impact of the tax on their household finances.
“WUSI is calling on all trade unions representing workers in both the public and private sectors to immediately activate their membership and begin comprehensive education campaigns about the overwhelming impact VAT will have on workers’ wallets.
“Workers across this country must wake up and understand exactly what their government is putting them into.
“This is not a technical adjustment it is a direct attack on your purchasing power. If you earn $200 a week and must spend $190 on food, transport, and school fees, a 10 percent or 15 percent VAT means you lose $19 to $28.50 every week just for trying to survive. That is money your family will never see again,” the SICTU President said.
Mr Kagovai explained that workers earning around $200 per week who already spend most of their income on food, transport and school expenses would lose a noticeable portion of their earnings under a VAT system.
WUSI said middle-income workers such as teachers, nurses, police officers and public servants will also be affected, as consumption taxes tend to take up a larger share of their income compared to wealthier individuals.
The union also expressed concern about the Bills Committee process, claiming that worker submissions in previous hearings rarely led to meaningful changes.
According to the union, committee reports and recommendations are often made but the final legislation usually remains unchanged, leaving workers to bear the heaviest burden.
WUSI is now calling on unions representing both public and private sector workers to begin educating their members about the potential effects of VAT.
The union is also urging business organisations including the Solomon Islands Chamber of Commerce and Industry (SICCI), the Solomon Islands Women in Business Association (SIWIBA), and the Indigenous Businesses to oppose the Bill in its current form.
The union said businesses would face additional responsibilities under the VAT system, including administrative costs and compliance requirements, while customers could have less money to spend.
The union has appealed to Members of Parliament, Cabinet and the Government Caucus to reconsider their support for the Bill.
“We are calling on leaders to listen to the people who elected them,” Mr Kagovai said.
WUSI said it is preparing to mobilise nationwide worker resistance if the Bill proceeds without changes, particularly if essential goods and services are not exempted and if stronger taxation measures are not placed on wealthy individuals and large corporations.
The union stated that any resistance would be carried out peacefully.
WUSI said it is calling on workers, unions and concerned citizens across the country to stand together on the issue.
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