Tonga's parliament has amended the country's Income Tax Act, hoping to catch foreign consultants in its tax net and reap more revenue from a heavily donor-funded budget that it passed yesterday 27 June.

The amendment will allow government to tax foreigners who are paid for work that they do in Tonga, including those who could be in the country for less than 90 days at a time.

The Deputy Prime Miniser, Hon. Samiu Vaipulu told the House that the Bill targeted consultants whom he said were being paid huge amounts out of the millions of dollars of aid projects, which form part of the 2013-14 National Budget that the House also passed yesterday evening.

A People's Representative, Sione Taione expressed his concern that the Bill would scare away not only foreign consultants, but also foreign investors, and even overseas Tongans from coming to Tonga.

Hon. Vaipulu said that the tax will target foreigners who are in Tonga working on aid projects and who are paid out of money allocated to aid projects in Tonga.

Tonga's National Budget for 2013-14 amounts to  $357,608,494 pa'anga, its biggest ever, and more than half of it is funded by aid donors.