7 Mar 2005

Exporters will be among the winners when Tonga brings in consumption tax

7:32 pm on 7 March 2005

Exporters will receive a boost when the Tonga Government's consumption tax comes into force at the beginning of April.

Tony Fakahau, from the Commissioner of Revenue's office, says it is the first in a series of wide ranging reforms of the country's revenue policy.

He says the tax will be fairer, more efficient and better administered, which will will boost economic development.

Mr Fakahau says the changes will help Tonga perform on an equal footing in Pacific trade, by making imports cheaper through the removal of excise tax, while exporters will also benefit.

"Exporters will be subject to zero rating which means that only imports will have to subject to the tax. So exports are not taxed - are not subject to the consumption tax."