16 Sep 2009

Solomons official cites strong tax system to help sovereignty

1:33 pm on 16 September 2009

The Solomon Islands acting Inland Revenue Commissioner says establishing a strong tax system is crucial to establishing the sovereignty of the nation.

Andrew Minto says hundreds of businesses have been drawn into the tax net this year, which has helped to boost the tax take by 41 percent to 115 million US dollars.

That compares to about 10 dollars a day that was collected on the worst days during the tensions.

Andrew Minto says the importance of an efficient tax system is often overlooked in developing countries.

"You really need a strong tax administration. It's a cornerstone of democracy, it's another step towards a nation being a sovereign nation, and being able to make decisions for itself and invest in its own future."

Andrew Minto says the extra revenue that's been collected is giving the government more discretion to fund its departments.