Press Release, Government of Tonga, Prime Minister's Office:

GOVERNMENT APPROVES CONSUMPTION TAX EXEMPTION FOR AGRICULTURAL SECTOR

Government today, Friday, June 10, 2005, approved the exemption of various products needed by the agricultural sector from the Consumption Tax. This approval also designated that the same set of items be subject to a zero rate of Consumption Tax.

In particular, the exemption shall apply to the following imports -

a) insecticides, pesticides and fungicides for use in agriculture;

b) agricultural machinery and implements, including hand tools and timber milling machinery;

c) agricultural seeds and fertilizers;

d) stock feed;

e) live poultry;

f) live bovine animals;

g) live swine; and

h) packaging materials for use in agriculture

Government also approved that the following taxable supplies shall be subject to a zero rate of Consumption Tax -

a) insecticides, pesticides and fungicides for use in agriculture;

b) agricultural machinery and implements, including hand tools and timber milling machinery;

c) agricultural seeds and fertilizers;

d) stock feed;

e) live poultry;

f) live bovine animals;

g) live swine; and

h) packaging materials for use in agriculture

In this latest move to create a more pro-growth environment, the exemption from the Consumption Tax and the imposition of a zero tax rate on the supplies needed by the agricultural sector will offer relief to farmers, and will help stimulate and sustain economic development for the whole of Tonga. - Information Unit, Prime Minister...’s Office, Nuku...’alofa, Tonga.