Tax reforms

US Senate passes sweeping tax reforms

The House of Representatives earlier approved the bill comfortably. Republicans have majorities in both houses of Congress.

For final approval the legislation must go back to the House on Wednesday for a procedural issue.

If it passes, as expected, it will be President Donald Trump's first major legislative triumph.

Critics say the package is a deficit-bloating giveaway to the super-rich.

But Republicans argue the tax cuts for corporations, small businesses and individuals will boost economic growth.

Confusion remains in Vanuatu over government's new tax income scheme

It's understood the Council of Ministers have adopted a report from their Revenue Review Committee, which commits Vanuatu to introducing personal income tax and company tax.

But the Chamber's President, Thomas Bayer, says because so few people in Vanuatu are formally employed, collecting income tax won't be an effective means of raising revenue.

Mr Bayer says he understands the government will also increase the VAT rate to 15 per cent, but he's struggling to confirm the facts.

ILO warns Vanuatu tax reforms could hurt vulnerable

There's already widespread opposition in Vanuatu for the new tax plan which aims to introduce among other things income tax and corporate tax by July next year.

RNZI reports the ILO's regional wage expert Daniel Kostzer said a recently released review of the proposed tax plan shows government had done a lot more consultations on the proposed reforms but it had failed to take most of the concerns raised into consideration.

Vanuatu private sector frustrated by govt's insistence on tax reforms

The Vanuatu Daily Post reported the new tax plan, which would see the introduction of income tax and corporate tax, was submitted to the council of ministers on Friday last week.

It said despite widespread opposition to the reforms the plan was submitted virtually unchanged to the Finance Minister Gaetan Pikioune and if passed will come into force in July next year.

The general manager of the Vanuatu Chamber of Commerce Astrid Boulekone says it was disappointing that the government had not taken the views and alternatives proposed by the private sector into consideration.

Former Vanuatu President says caution needed on tax reform

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.