Local machinery contractors in Honiara have raised concerns regarding the recent tax exemptions granted to Xiao’s Henderson Hotel Ltd., which total over $15.2 million. These exemptions, approved by Minister of Finance Manasseh Sogavare, allow the hotel developer to import construction materials with a 100% tax exemption. Notably, the list of exempted items includes two mixer trucks—equipment already available within the country, which has started discussions from local contractors.
Contractors have questioned how the exemption committee and the Finance Minister could overlook the availability of such machinery locally, emphasizing that local businesses could provide these services.
A local contractor who wished to remain anonymous pointed out that such decisions undermine the support for Solomon Islands-owned companies and their ability to compete fairly. “How is this showing support for private-owned companies in Solomon Islands?” the contractor asked.
Community leaders have also expressed their disappointment, highlighting how Australia’s approach to supporting local businesses by sourcing materials and services domestically stands in complete contrast to this decision.
They call for a more balanced approach that prioritizes local enterprises to ensure fair economic growth and job opportunities for Solomon Islanders. The issue highlights ongoing concerns over the prioritization of foreign businesses over local enterprises in major projects.
End///
Thoughts? Iumi stori
