The Ministry of Revenue and Customs hosted a Youth in Tax and Customs Forum at the Fa’onelua Convention Centre in Nuku’alofa on Thursday, 30 April, aimed at improving young people’s understanding of taxation and border protection.
Panel discussions involving ministry officials and industry representatives, targeted business students and young people across Tonga, encouraging greater awareness of how taxes contribute to national development.
The Minister for Revenue and Customs, Hon SitiveniToumo’ua, delivering the keynote address, said tax revenue accounts for between 40 to 50 percent of Tonga’s national budget. He declared that approximately $400 million pa’anga is collected in taxes annually, with $300 million in cash revenue and $100 million allocated as incentives.
“Many people are unaware of how significant tax is to the country. This forum is about shedding light on that and helping our youth understand its importance,” he said.
During the panel discussions, Veimau Fe’aomoeaki highlighted the growing role of e-commerce in Tonga, noting both its benefits and associated risks for customs. These included the potential for drug smuggling and the importation of counterfeit goods. He said the ministry is strengthening regulations and enforcement to address these challenges.
Acting CEO of the ministry, Sau Niulala, emphasized the need for young people, particularly aspiring entrepreneurs, to understand how taxes are applied to imported goods. He explained that variations in tax charges are based on the declared value and type of goods.
“We want young entrepreneurs to understand that taxes are essential for economic growth and are calculated based on clear criteria,” Niulala said.
He also outlined the ministry’s current enforcement tools, including X-ray machines, detector dogs, World Customs Organization systems, and patrol boats operated in collaboration with police, His Majesty’s Armed Forces, and fisheries authorities. A newly established Maritime Security Department will further strengthen monitoring of sea-based trade.
Concerns were raised by students about the importation of illicit drugs, given that Tonga’s main entry points are the airport and seaport. Sau Niulala urged the youth to report suspicious activities to authorities.
The forum also discussed proposed whistleblower legislation currently under Cabinet review, which aims to protect individuals who provide information during investigations.
Officials says, that Tonga has shifted from a default tax assessment system where the ministry calculated business taxes to a self-assessment model, requiring business owners to accurately report their own tax obligations.
The forum forms part of ongoing efforts by the ministry to build transparency, compliance, and awareness among Tonga’s next generation of taxpayers.
