Minister Kuma announce business incentives; SIEA tariff reduced
MINISTER of Finance & Treasury Hon Harry Kuma has announced business incentives to boost the recovery process of local businesses in Parliament today.
Delivering his 2021 Budget Speech in Parliament, Minister Kuma said the Government is fully aware that many local businesses are still struggling because of COVID-19.
He acknowledged that it would take years for many local companies to fully recover.
Hence, as part of the DCGA Government economic recovery strategy, the Finance Minister announced the following Business Incentives:
- Government will not lift but continue with the current tax incentive relief measures for the tourism sector.
- Government will continue to fund the SOE Community Service Obligations in 2021.
- Government will also continue the grant/subsidy program for both copra and cocoa industry in 2021 to help in the cost of freight and prices.
- Government will also provide special incentives for the NONI industry and local farmers in 2021.
- Finally, the government has completed the independent review of electricity tariff.
Meanwhile, Minister Kuma also announced in Parliament that based on this independent review, all SIEA tariff rates have been reduced, and will be effective as of 1st May 2021, these includes;
- Domestic or household customers are likely to see a reduction of 22 percent,
- Commercial customers are expected to see a decrease of around 27 percent, and
- Industrial customers are expected to see a fall of 5 percent.
“The government expects an overall reduction averaging by 18 percent. SIEA will provide the details of the reduced rates in the coming weeks before they are implemented,” Minister Kuma said.