Results for Economy and Trade

Tonga has decided to adopt daylight saving and will advance its clock one hour ahead on Sunday, November 6 for two-months, in order to allow more daylight hours in the evening during the longer summer days. The change will put Tonga 14 hours ahead of UTC during the summer.

In its latest state of the economy report, the International Monetary Fund (IMF) has called on Tonga to improve its debt management, make broader reforms to increase revenue, and to effectively manage public spending. In the IMF's 2016 Article IV report released this week, Tonga was also encouraged to continue to seek concessional and grant financing for the South Pacific Games, while the report welcomed Tonga's efforts in curbing the wage bill and avoiding cost overruns. It urged Tonga to provide more opportunities for private sector development.

Tonga’s bankers, who fought to stop the imposition of a new Foreign Exchange Levy that came into effect today June 1, say the legislation is poorly drafted and imposes an unfair tax on the financial sector, which will be passed on to the community – particularly affecting remittances.

Japan yesterday agreed to commit $3.6 million pa'anga to Tonga to purchase goods, which may include sports equipment, to help promote economic and social development efforts.

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.