SICTU calls for halt of all mining operations also wants gov’t to also cancel all exemptions

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Solomon Island Council of Trade Union is calling on the Government to halt all existing mining operation and review its mining and tax laws to maximize benefits to landowners, Provincial and National Government before opening the mining sector to investors.

SICTU further calls on the Minister of Finance to cancel all the Tax Exemptions and Remissions given to companies and especially the mining companies. Solomon Islands economy is basically run by the money it collected from its taxes and to give away tax exemptions is killing the economy.

SICTU stresses that in the case where it is seen genuine and necessary for the Government to grant Tax Exemption to any organization, such exemption should not be attached to any conditions like the profitability of the companies. It has been revealed that when companies are granted tax exemptions conditional to their profitability, such companies have never declared profit.  Any tax exemptions granted on the grounds of necessity must have a clear and definite timeframe.

Nickel and Bauxite mining operation in the country must not continue to enjoy the special privilege of tax exemption when they are fully operational. A Special Audit should be conducted on the companies who wish to apply for extension of tax exemptions due to loss declared. An independent audit should be a condition set as verifier mechanism for tax exception extension application.

While “we accept that mining operation is costly, that excuse must not be used by the investors to manipulative and avoid paying dues to government and mining workers.”

-SICTU Press Release