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Investigate policies not businesses

Salt Lake City, Utah, USA


However the Ministry of Finance-Revenue wishes to call its newest Consumption Tax (CT) scheme ( Tax Department investigates large businesses , 07 Oct., 2007), it does not negate the fact that it is another form of taxation.

With due respect, Minister for Finance and Chief Commissioner of Revenue, Hon Siosiua T.T. ‘Utoikamanu is out-of-order to …“investigate…” the complaints coming from businesses. It sounds like a sting operation.

Businesses have a legitimate right to complain when government bureaucratic policies force price increases in the marketplace. If the Ministry of Finance and Revenue has a public relations problem, they need to investigate their own policies. Private companies and their customers do feel the pain when bureaucratic policies cause negative domino effects in the marketplace.

Consequently, when taxes are raised, prices of goods and services in the marketplace are increased to cover the additional costs.

Businesses do not pay taxes. They will always pass on the costs of doing business to consumers. No matter how businesses juggle their obligations to Government (tax credits, tax incentives, etc.), they will not sacrifice their profit margins because it is the reason for being in business, and their obligations to their investors.

Government cannot dictate to the private sector how to price goods and services. That would be …“price control….” The marketplace determines prices through innovation and competition.

Government facilitates business and commerce by staying out of companies’ business, and reducing the need for more taxes. A healthy economy needs business and consumer freedom to engage in commerce with the least government interference.

Businesses would invest more of their monies to create more economic activities: build more buildings; buy new vehicles; hire more workers; buy more goods and services, and pay more taxes.

When more consumers are employed, they have more money to spend, they buy more goods and services, and more of them are paying taxes.

Conversely, heavy taxing of businesses discourages investments, fewer workers are hired, and fewer taxes are collected.

Where are the People’s Representatives who should oppose policies counterproductive to encouraging business growth? But, of course, they are more keen on collecting more taxes to spend and pay for their fat paychecks.

Sione Ake Mokofisi

Salt Lake City, Utah USA

samokofisi [at] mac [dot] com">samokofisi [at] mac [dot] com