Results for Economy and Trade

A two-day private sector consultation is being held this week on March 17-18 in Nuku'alofa, to discuss the potential implications of the Regional Pacer Plus Agreement (PACER Plus) on Tonga’s private sector, following the closing of previous consultations hosted by Tonga's Ministry of Foreign Affairs and Trade and the Tonga Chamber of Commerce and Industry with representatives from the private sector and the Office of the Chief Trade Adviser (OCTA).

Tonga is looking to lift labour standards by becoming the 187th member of the International Labour Organization (ILO) this year, effective from 24 February 2016.

Tonga’s controversial Foreign Exchange Levy Act 2015 has been suspended, according to Press Statement released by the Ministry of Finance and National Planning yesterday, 20 November.

The implementation of the government’s controversial 1% Foreign Exchange Levy has been deferred again for a “few weeks”, stated the Minister of Finance, Hon. ‘Aisake Eke in a letter, dated 6 November, circulated to general managers of financial institutions in Nuku’alofa.

The Foreign Exchange Levy Act 2015 that was originally scheduled to be implemented on 21 October, finally came into force yesterday, November 3, allowing government to collect one seniti from the banks on every pa'anga sold or purchased in foreign exchange transactions.

Tonga and Forum Island Countries (FIC) will benefit from enhanced regional trade and economic integration under the Pacific Agreement on Closer Economic Relations (PACER) Plus Agreement, with Australia and New Zealand.

The Tonga Government does not have an investigation project to find out if Tonga civil servants are considered unpaid, the Minister of Finance and National Planning, Dr ‘Aisake Eke said. “There is no investigation, but a review of the salary structure,” he said in a statement on August 7.

A proposal for government to finance the 2019 Pacific Games with Consumption Tax, instead of a levy on profit from foreign currency exchange transactions was presented by Bernie Poort from the ANZ Bank and Dan Henson from the Bank of the South Pacific to the Minister of Finance, Hon. ‘Aisake Eke during a Tonga Chamber of Commerce special meeting on Friday, 31 July.

The World Bank has warned Tonga of large fiscal risks which are lurking in the horizon, “the repayment of its two external loans, the financing of the 2019 South Pacific Games, and the periodic large public servant wage demands.”