13 May 2016

Tonga's foreign exchange tax from next month

2:54 pm on 13 May 2016
Tonga money 2012

Photo: Supplied

Tonga will finally introduce its controversial foreign exchange tax next month in an effort to raise much needed funds to host the 2019 Pacific Games.

New legislation means a half a seniti will be taken from each pa'anga exchanged.

The Finance Minister 'Aisake Eke said proceeds would assist government finance its hosting responsibilities for the 2019 South Pacific Games.

Dr Eke said the levy would come into effect on June 1st and be repealed at the end of June 2020 following the Games.

The levy had been delayed numerous times after criticism surrounding a lack of consultation and confusion over its requirements.

The Games are expected to cost at least $US 40 million.

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