The government in Vanuatu is coming under fire for what it's calling its case for revenue reform and modernisation.
According to ABC, the government says its Value Added Tax, which supplies nearly 40 per cent of revenue, has become inadequate for maintaining government services. The government says it wants to replace the range of fees and taxes it imposes on business, which it says are costly and lead to noncompliance.
Instead it plans to introduce a comprehensive income tax system that it says will be more effective and efficient.
But whatever the case for tax reform, it will be a shock to ni-Vanuatu, who have never had a tax on income.
George Sokomanu, the first president of Vanuatu, says the government should tread carefully with the new taxes, which weren't viable during his time in office.