Goods Tax Relief For Businesses Hit By Tsunami

Goods Tax Relief For Businesses Hit By Tsunami

The Minister of Finance, Hon Gordon Darcy Lilo announced today that he had amended the Guidelines covering the granting of Goods Tax exemptions to include relief for businesses who face rebuilding premises and replacing plant and equipment destroyed by the earthquake and tsunami that struck Choiseul and Western Provinces on 2 April 2007.

“While the rebuilding process will be a long one, I wanted to ensure that those in business who face the cost of rebuilding premises and replacing plant and equipment for their businesses, know that the Government is standing with them.

“By announcing this measure today I hope that businesses can plan with confidence and set about the essential task of re-establishing themselves and their operations,” said Minister Lilo.

Under the changes announced by the Minister, businesses will be granted exemption from Goods tax, which is generally charged at the rate of 10%, on items which are purchased to replace buildings or plant and equipment proven to have been destroyed in the earthquake and tsunami which hit Western and Choiseul provinces on 2 April 2007.

In considering the exemption application will have to be considered on whether the property was insured, the taxation record of the applicant, the amount of any aid assistance directly provided to redress the loss and any improvement in the quality and type of asset for which exemption is sought over those that were destroyed. The exemption does not extend to the replacement of stock in trade, goods purchased for resale, spare parts, oil, diesel and lubricants, or road vehicles which are specifically excluded from exemption.

“I have also spoken to the Acting Commissioner of Inland Revenue, Mr Ronnie Piva who has assured me that he has all the powers he needs under the various acts Inland Revenue administer to deal with requests from taxpayers who may be facing difficulty in meeting their tax obligations and liability after the effects of 2 April,” the Minister said.

ENDS

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