24 Oct 2006

Tonga's income tax bill will put more pressure on already tight cashflows

4:15 pm on 24 October 2006

Public consultations on Tonga's Income Tax Bill 2006 reveal that the bill needs more revision, if it is to be accepted by the public and in the House.

The Income Tax Bill, which the government hopes will become law and in force by 1 July 2007, proposes to increase taxes for businesses.

Farmers, fishermen and small traders would also need to pay taxes and proposes a new turnover tax on companies, regardless of whether they make a profit or a loss.

The Matangi Tonga online news site reports the bill also removes personal tax exemptions.

Public consultations on the bill end this week.