The Member of Parliament (MP) for Central Kwara’ae, Ricky Fuo’o, has joined other senior leaders in the country in opposing the continued granting of tax exemptions to foreign investors.
Mr. Fuo’o voiced his concerns after a report revealed that the Minister of Finance and Treasury, Manasseh Sogavare, had approved a total of $15.2 million in exemptions for Xiao’s Henderson Hotel Ltd, a Chinese company.
The news has sparked widespread apprehension among the public.
In a statement, Hon. Ricky Fuo’o raised several pressing issues facing the nation.
“People in this country are literally dying in our hospitals due to a lack of beds and medicines. Our roads are in their worst state; some provincial capitals don’t even have wharves or essential infrastructure. Our schools are overcrowded, and our finances are in a dire situation,” he said.
“We have very limited borrowing capacity because we are close to, or even over, the ceiling for borrowing (debt-to-GDP ratio), and yet we are handing out exemptions to a privileged few.”
Fuo’o clarified that while he had no issue with tax exemptions in principle, he believed that if such exemptions were granted, there should be clear performance indicators and regular monitoring to ensure that these exemptions contribute to the nation’s economic development.
“What is clear is that it is the same few individuals who are abusing these processes,” he added.
According to the report, the exemptions granted to Xiao’s Henderson Hotel Ltd include a 100% import duty exemption valued at $577,605.13 and a 100% goods tax exemption totaling $9,487,014.66.
Both exemptions were granted on 31 July 2024 and are set to expire on 31 January 2025.
By Solomon Lofana
Solomon Star, Auki
