Home Business Gov’t loses $83.6m in tax exemptions for first 4 months, Sogavare vows...

Gov’t loses $83.6m in tax exemptions for first 4 months, Sogavare vows to ‘stop exemptions’

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Sogavare speaking in Parliament today
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Minister of Finance and Treasury Manasseh Sogavare has revealed in Parliament today the serious leakages in government finances especially from exemptions which for the first four months has cost the government $83.6m.

And Sogavare has promised to put an end to discretionary exemptions which if allowed to continue until the end of the year would cost the government $222.6m.

The revenue leakage in this area is staggering, said the former Prime Minister.

He promised that the Government would review the discretionary exemptions and disallow granting of exemptions from now on to any individual companies.

Speaking in Parliament today, Sogavare also reveled that the total exemption forgone by the government from the first four months from January to April from Inland Revenue and Customs was $83.6m. He detailed that this includes $9.3m of statutory exemptions which means he as the minister has no power over it.

There was also $74.2m discretion exemptions of which $8.4m belongs to MPs, through CDF purchases.

The former PM and MP for East Choiseul said for discretion alone, if the current trend continues the government expects to forgo $222.6m or more by the end of 2024.

“That’s the kind of revenue that we lost but we really need it,” he said.

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Meanwhile he reiterated the government would review the discretion exemptions and disallow granting of exemptions from now on to any individual companies.

He said any applications will be dealt on by case-by-case basis.

News@SBMOnline2024

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