Tonga announces new measures to squeeze taxpayers [1]
Tuesday, April 11, 2006 - 17:56. Updated on Monday, September 29, 2014 - 10:05.
Introducing stringent new measures to raise more revenue for the Tonga Government, the Ministry of Finance will this month, start scrutinizing all businesses collecting Consumption Tax.
Then next year will see the introduction of road taxes and taxes on bank charges in order relieve the fiscal constraints caused by the 60%, 70% and 80% public servants' salary rise.
The Minister of Finance, Hon. Siosiua 'Utoikamanu, on April 8 announced that in a few days time he would tighten up the collection procedure of the new 15% Consumption Tax (CT), introduced in April 2005, and a senior auditor from the New Zealand Inland Revenue Department will join the Revenue Services Departments for nine months. While the senior auditor is in Tonga he will examine the books of, "every single business collecting CT on behalf of government."
The Minister hoped that the exercise will be an opportunity for these businesses, "to check the appropriateness and integrity of their business systems, and to gain assurance that they are not at risk of incurring penalties available under the revenue Services Administration Act."
Tonga has so far 440 registered CT taxpayers.
Road taxes
The other revenue collecting measures that the Minister will introduce this year is an increase in the registration fees of motor vehicles.
Then in 2007 the minister said he would introduce road-related taxes, which will mean an increase in the prices of petrol and diesel.
He will also introduce a special tax on the fees and charges that banks charge their customers, and on July 1 next year he will implement the new income-tax reform program.