How many investors have been discouraged? [1]
Friday, March 11, 2005 - 18:00. Updated on Wednesday, April 9, 2014 - 10:21.
Editor's Comment
by Pesi Fonua
As we discover this week that it is not viable for a New Zealander to invest in Tonga because of a restrictive New Zealand tax legislation, a number of questions spring to mind.
How long has this legislation been in place, and how many prospective New Zealand investors have been discouraged by this tax legislation?
For New Zealand to discourage New Zealanders from investing in Tonga seems outrageous, taking into consideration a number of factors.
New Zealand is Tonga's biggest trading partner. We import several million dollars worth of goods from New Zealand, while our exports to New Zealand are pitifully less than a million dollars a year.
It has been estimated that about 40,000 Tongans have made New Zealand their home, and some of them are well-to-do business people and sportsmen and women who have made valuable contributions to the development of New Zealand.
Does this mean that these people can't invest in Tonga?
It is definitely very unfair for these New Zealanders and Tongans who have made New Zealand their homes to find that investment in Tonga is made unprofitable by restrictive tax laws.