Tax exemptions face the chop, says PM

 THE Government will halt tax exemptions for foreign companies except for certain industries to encourage investment in the country, Prime Minister Peter O’Neill told Parliament yesterday.

O’Neill said for too long past governments have been bluntly giving away tax holidays to foreign companies.

“This government has not given way any tax exemption but we must see an end to it,” he said.

“We will not extend any exemptions to companies already given tax exemptions.”

O’Neill said that a review in progress would address the issue but special and targeted industries like agriculture and tourism could be given special consideration to encourage potential investors.

In response to a question on the current taxation review, O’Neill said the review team led by Sir Nagora Bogan and David Sode, both former Internal Revenue Commissioners, would hold public consultations.

He added that business visas granted to foreigners would also be controlled as it has been abused.

“We must put an end to issuing of visas to foreigners who come on business visas and then get employed and take their returns back home without paying tax,” the prime minister said.