All current manufacturers and exporters in Vanuatu will be exempt from paying its new Industrial Permit Fee, or contributing to the Industrial Development Fund for the next five years.
The government says only newly set up companies will be expected to comply with the new regulation.
The director of Trade and Industries, Jimmy Rantes, made the announcement after complaints from businesses at the new costs.
They have argued that Vanuatu businesses already face high costs.
The business operators complained during a consultation workshop organised by the Government seeking feedback on the draft regulation, which is designed to become a part of the Industrial Development Act.
Mr. Rantes says he welcomes the feedback and promises similar consultations throughout all six provinces before the final draft is put to Parliament at the end of the year.