Can government use Pacific Games levy for other purposes?
Monday, August 14, 2017 - 15:50
Can the Tonga government hold the money collected from its Pacific Games foreign exchange levy and use it for other purposes? It's a question that many people are continuing to ask, following the government's withdrawal from its agreement to host the 2019 Pacific Games, while the games levy continues to be imposed on foreign exchange transactions
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Is it about the games or is
Is it about the games or is it because of budget problems, where the higher the budget the more money they'll need to find from the public? I thought the main reason was cancelling the games was because of the financial burden being too great, and also the economic costs outweighed the benefits. A burden partly paid for in the levies collected. If we no longer are going to shoulder that burden then we should cancel the levy, also the financial sector do not really have anything to do with sport facilities (or do not want to be paying for sport facilities).
Maybe the public outcry might have been less if certain sectors were targeted compared to taxing everyone via an increased CT, but if Government wants funds for Golf courses or sports or to pay the fine, then perhaps ask everyone to shoulder that burden together. The levy also has negative impacts to foreign currency exchangers and to travellers, which money collected isn't used to help that sector but redistributed to other places where we are unsure of how much will be got back.
An example is Vuna Wharf, for the multimillion dollar wharf how many years will it take for tourists using that wharf to get back the money invested in it. Not also forgetting tourists aren't likely to be coming all the way to Tonga to just look at the wharf. So when looking at the golf course, other facilities etc, it'd be nice to know how much will we likely be getting in return and how long will it take to get back the money invested in it. God bless
Dear Editor
It is odd that govt wanted to continue imposing a sports levy despite them cancelling the Pacific Games 2019 two months ago. But I'm not surprised at their decision to continue the levy. At one of their media conferences held sometimes in June, the PM clearly characterized the sports levy as an incentive to support local sports development, presumably in preparation for future sports. It wasn't clear to me whether he meant for the new tax as an incentive for the Pacific Games or for other games. Nonetheless, the message the PM was giving is somewhat misleading. Obviously, his message was intended to allay people's anger, particularly those who opposed the cancelling of the PG. That is, by him and his cabinet proposing for the new tax, they clearly hoped that the public will be bought into it.
The govt had 5 or 6 years to plan and coordinate the Pacific Games but for some reason, lost their way through that period, either because of mismanagement or that it was a deliberate cabinet decision not to hold the games. I read the Hon Vuna's characterization of the PGC president as one of surprising and bemusement, by describing him as "koe motu'a India", as if he is to be suspected of anything after visiting Tonga for a meeting with the PM and cabinet. Of course, the Minister's language is clearly intended to bribe the community so we can all feel angry about the PGC, and not the government. Extremely sad that the PM and cabinet had [lost] their way through this process, particularly since their general approach to the cancelling of the games seems illogical and does not stand up well to scrutiny.
Malo
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