Results for Economy and Trade

The Tongan economy will be struggling for survival during the next financial year, 2007-08, warns Tonga's Minister of Finance, Hon. Siosiua 'Utoikamanu, saying that the government has suffered a massive hit on its revenue stream following the losses suffered by the country's businesses on November 16.

Tonga's plan to become a member of the World Trade Organisation WTO in July this year is now very doubtful, according to Paulo Kautoke, the Chief Executive Officer for the Ministry of Labour Commerce and Industries.

Nuku'alofa's devastated business community will be allowed to delay their payments of Consumption Tax and Duty for six weeks.

Revisions will be needed to Tonga's Income Tax Bill 2006 if it is to win acceptance in the House this year and in order to avoid a hostile reception from the public. This need is clear as public consultations on the Bill are winding up this week. By Mary Lyn Fonua

Tonga's Ministry of Labour, Commerce and Industries will hold a series of WTO consultative workshops, starting next month to inform Tongans about new trade terms and tax reform that is being put into place.

Tonga has deferred its membership of the WTO until July next year, the Tongan Prime Minister, Dr Feleti Sevele told the Tongan media yesterday, July 25.

Announcing a 5.3% inflation rate for February 2006, Tonga's Ministry of Finance on April 5 concluded that while the cost of living is still increasing, it was good news compared to the double digit inflation figures of February last year.

As of November 2005 Tonga's official Foreign Reserve held by the National Reserve Bank of Tonga was $81.8 million, an amount equivalent to 4.3 months of imports of goods. The November Foreign Reserve was $0.6 million less than that of October.

Following the acceptance by government of the demands of Tonga's striking civil servants for a 60, 70, 80% salary rise on September 4, Tonga's Minister of Finance, Hon. Siosiua 'Utoikamanu has been attending development and finance meetings in New York, and recently in Barbados, in the West Indies.