Value Added Tax (VAT) and Income Tax Act Information Session a success

A total of 98 participants have attended a conference at Ahara Conference Room, Heritage Park Hotel for the Value Added Tax (VAT Implementation and Income Tax Act Information Session.

The information session was organized by Solomon Islands Chamber of Commerce and Industry (SICCI) in collaboration with the Economic Reform Unit and Inland Revenue Division of the Ministry of Finance and Treasury.

The information session was to discuss tax reform initiatives of the Government, in particular, the progress of Income Tax Act amendments and also circumstances that may affect businesses when VAT is implemented.

The meeting confirmed that the Economic Reform Unit and the Inland Revenue have engaged a consultant to work on the Income Tax rewrite

The revised policy will then be submitted to the Cabinet for approval before forwarded to the Attorney General’s Office to begin the drafting of the Income Tax Act.

This entails a complete rewrite of the Act to simplify the complicated terms used in the current legislation and to incorporate new provisions to address the current issues encountered by businesses in their daily operations.

Timeline for the completion of this Act is yet to be confirmed as it depends on the drafters and consultants who will carry out the task.

Small businesses articulates that the Value-Add Tax (VAT) Act has no provision that would encourage exemptions for struggling businesses.

Small businesses further states that the VAT Act is a piece of legislation that inspire financial challenges as businesses are also liable to pay other taxes.

“This act is unfair for businesses whose revenues are below 2 million thresholds. It put pressure on struggling businesses who are already tangled to other tax obligations”.

SICCI’s Advocacy Officer, Elvis Bwa’a acknowledged the participants for attending the meeting.