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

The Chamber of Commerce in Vanuatu is calling on the government to come clean on their plans to impose income tax, or risk causing further damage to the country's reputation with international investors.

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.

He told Pacific Beat that he has not seen anything come out officially from the Council of Ministers or any official explanation.

He added it’s all been street talk and it’s not reliable in Port Vila.

Mr Bayer said there will be an increase in cost of living regardless of which tax is implemented.

 

Photo file.Caption: Port Vila