Pacific

Tonga looking at sweeping tax changes

15:23 pm on 9 May 2003

The Tongan Government is planning sweeping tax reforms.

The planned changes include ending income tax for a large number of lowly paid workers, and a shift towards a broad based consumption or goods and services tax.

It will also mean lower customs duties, corporate and income taxes.

The Finance Minister Hon Siosiua Utoikamanu is seeking the community's reaction to the proposals.

The Government says the current taxation system needs to be considerably changed to bring it into line with the requirements of the World Trade Organisation and the Pacific Island Countries Free Trade Agreement or PICTA.