Vanuatu govt introduces new kava tax

Vanuatu's Association of Kava Exporters is angry at a new tax to be imposed next year.

The association said there was no consultation from the government on the 2 percent tax on kava exports it is planning to apply.

It has written to the Finance Minister, Johnny Koanapo, pointing out that kava has become a huge game changer in recent years for farmers and their families.

It said this improvement in quality and quantity is down to a major replanting programme six years and now the country is reaping the benefits.

The association said this has been achieved with little help from the government.

They say this new tax will be the third tax on kava after one by provincial governments and another by customs and they plead with the minister to sit down and discuss the issue.