THE Solomon Island Council of Trade Union (SICTU) is calling on the government to halt all existing mining operations to review its mining and tax laws for the maximization of benefits to landowners and host provincial government and the national government before reopening the mining sector to investors.
SICTU said the Minister of Finance and Treasury must cancel all the tax exemptions and remissions given to companies, especially the mining companies.
It said Solomon Islands economy is basically run by the money it collects from taxes and to give away tax exemptions is killing the economy.
“In the case where it is seen genuine and necessary for the Government to grant Tax Exemption to any organization, such exemption should not be attached to any conditions like the profitability of the Companies,” SICTU said.
SICTU said it has been revealed that when companies are granted tax exemptions conditional to their profitability, such companies have never declared profit, adding that any tax exemption granted on the grounds of necessity must have a clear and definite timeframe.
“Nickel and Bauxite mining operation in the country must not continue to enjoy the special privilege of tax exemption when they are fully operational.
“A Special Audit should be conducted on the companies who wish to apply for extension of tax exemptions due to loss declared.”
SICTU said an independent audit should be a condition set as verifier mechanism for tax exception extension application.
“While we accept that mining operation is costly, that excuse must not be used by the investors to manipulative and avoid paying dues to government and mining workers,” it added.
