New leaked government documents reveal that the Minister of Finance, Manasseh Sogavare, has approved over $15.2 million in tax exemptions for Xiao’s Henderson Hotel Ltd. These exemptions, granted to support the construction of the hotel, allow the developer to import materials with a 100% tax exemption. The total amount of exemptions granted in two separate orders includes $9,487,014.66 for a recent approval made on August 31, 2024, and $5,778,605.13 for an earlier exemption granted on July 31, 2024.
The exemptions apply to goods tax liabilities for imports, with both orders set to expire at the end of January 2025.
The exemptions are part of the government’s strategy to stimulate economic growth through such incentives, as explained by Sogavare, who defended his decisions against public criticism. Despite the controversy surrounding these exemptions, the Finance Minister maintains that these measures are essential for economic development and that he has acted in line with his reform commitments.
The issue of tax exemptions has caused significant public debate, especially after similar exemptions were granted last year. However, Sogavare insists that these exemptions are not errors but powerful tools to create growth and investment in key sectors, such as tourism and infrastructure development.
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