The Solomon Islands Finance Minister, Synder Rini, has announced a tax increase on beer and tobacco and will abolish the goods tax on rice.
In the second reading of the National Budget 2008, Mr Rini told Parliament of the decision.
"This will benefit all our people as rice makes up a relatively large part of their expenditure. To help fund the removal of goods tax on rice the government will increase the rate of tax on a number of goods which are currently subject to low tax. I am therefore obliged to also announce that there will be a 20 percent increase in the rate of excise on tobacco and beer and an increase in the gaming tax to 35 percent."
The Solomon Islands Finance Minister, Synder Rini.
The debate on the 1-point-4 billion dollar budget will begin Thursday.