In recent days, the leader of Opposition Hon. MP Wale has released three leaked documents that have created widespread public anger.
The documents, detailing tax exemptions totaling over SBD 30 million, reveal that two foreign-owned companies—Wan Chen Company Limited and Nature Product Limited (including its motel)—were granted tax exemptions by the government.
“The worse thing is we only know of the three exemptions because they were leaked to the public. We do not know the full extent of loss of government revenue due to exemptions.”
-Opposition Leader
The exemptions come at a time when the Solomon Islands is struggling with severe financial challenges, raising questions about the priorities of the government.
The Finance Minister in his speech in Parliament stated ‘the government will review the discretionary exemptions and disallow granting of exemptions from now on (June 2024), to any individual or company. These are tough actions.’
The Finance Minister in his speech highlighted ‘the total exemption forgone by the government in the first four months from January to April 2024, for both Inland Revenue and Customs, totalled $83.6million. This included $9.4million Statutory Exemptions.’
Despite the assurance made in Parliament, Hon Wale has criticized the GNUT government for misleading Parliament and the people of Solomon Islands.
Locals argue that such generous concessions to foreign entities undermine local businesses and contribute to the country’s growing economic instability.
Public reaction has been one of disbelief, with many citizens expressing shock at the scale of the exemptions, given the nation’s current fiscal struggles.
The news has intensified calls for responsible ministers to give them some answers in how tax exemptions and other financial policies are implemented. Some have accused the government of prioritizing foreign businesses over the needs of the local population, further deepening frustrations with ongoing economic hardships.
As the story unfolds, it remains to be seen how the government will respond to these leaked documents and whether further scrutiny will be applied to the granting of such tax exemptions. The controversy is likely to continue to dominate public discourse in the coming days.
