Tonga's Cabinet on 20 January 2021 approved a zero rate of Consumption Tax for the services of collection and disposal waste by a government approved waste management entity, the Waste Authority Ltd.

However, the savings will not be passed onto the public.

On a first glance at the Tonga Government Gazette Supplement Extraordinary, one might think that government is making a definitive move for a massive national clean-up, by making rubbish removal tax free.

However, when the Chief Executive Officer of Waste Authority Ltd., Malakai Sika was asked to comment, he clarified that the public will continue to pay the same amount, but the Waste Authority Ltd does not have to pay Consumption Tax to government.

Effectively, this means a 15% service price increase for the public, but no CT will be charged on top of it.

Malakai stressed the desperate need of the Waste Authority Ltd. to upgrade their rubbish collection facilities, and trucks. They have extended their service to the outer islands of ‘Eua, Ha’apai and Vava’u and they are in desperate need of better equipment.

The base price increase will help the Waste Authroity Ltd. to upgrade their service.