Govt signs MoU with first beneficiary of fiscal incentives under noni industry
The National Government today signed a Memorandum of Understanding (MoU) with the locally owned Solomon Noni Corporation Limited.
This is as part of the Democratic Coalition Government for Advancement’s (DCGA) policy to provide fiscal incentives for the noni industry.
This incentive is available to any company and corporation under the noni industry who meet the required conditions of the incentive.
Under the MoU, the Government grants fiscal incentives to Solomon Noni Corporation Limited (SNCL) such as an income tax holiday of 5 years, exemption from Goods Tax and Customs duty on all capital Equipment that will be exclusively for use in the processing of Noni including trucks and forklifts for the use and collection of fruit from farmers.
Goods that are also exempt from Goods Tax and Customs duty include wooden and plastic pallets, food grade plastic drums, food grade plastic liners (bags), totes, Intermedia Bulk Container (IBC) tanks, labelling materials, cleaning chemicals, factory spare parts, freezer shipping containers, standard shipping containers, replacement generators and replacement processing machines.
Hence, under the MoU, Solomon Noni Corporation Limited will still be obliged to be liable for all withholding tax and PAYE obligations consistent with the provisions of the Income Tax Act and to lodge annual income tax returns consistent with the provisions of the Income Tax Act during the tax holiday period.
Further, SNCL shall comply with all its tax obligations under this MOU, and shall not enter into any tax avoidance arrangements during the term of its tax holidays.
Should it do so, the tax holiday and other tax incentives are withdrawn with immediate effect; and tax otherwise exempted under the MOU will be subject to repayment.
The Noni sector has a number of unique characteristics that distinguish it from other sectors of the economy.
Noni has emerged as a new potential tree that can be commercialized and hence, become an income and employment generating crop that could be added to current industries such as cocoa and coconut.
The Noni tree is easy to cultivate and production process is not too complicated, the Noni fruit is harvested, dried and the juice is extracted from its fruit, pasteurized in special storage tanks and is then able to be exported to overseas buyers usually as puree or juice for further processing.
The Government was represented by Permanent Secretary of the Ministry of Finance and Treasury whilst Member of Parliament for North West Guadalcanal and owner of Solomon Noni Corporation Limited Hon. Bodo Dettke represented his company.
The DCGA is fully committed to the implementation of its policy priorities in the interest of economic empowerment and national stability.