A tax has been introduced in Vanuatu requiring exporters of local produce to pay two percent of its market value to the region where the produce comes from.
Under the local produce order all exporters of coconut or copra, coffee, potato, beef, kava, sandalwood, sea products, coconut crab, poultry or pork products, and timber will pay the tax.
The Daily Post website reports the Director of Provincial Affairs, Cherol Ala, says the order will provide another revenue stream for provincial government councils
The Secretary General of Shefa Province Michel Kalworai says the order is a result of a call from the provinces for a better share of central government revenues.
Currently the central Government makes an annual grant of almost 300-thousand US dollars to each province.