PEC SET TO REVOKE TAX-FREE DECISION

The Parliamentary Entitlements Committee (PEC) is set to revoke the Tax-Free Award to Members of Parliament as of 1st April this year when the new entitlements will be established.

The actions are made after the many protests from the public and private sectors lead by the Solomon Islands National Council of Trade Unions (SICTU) last year.

President of the Solomon Islands National Council of Trade Unions Mr David Tuhanuku said they are pleased with the PEC’s actions to welcome SICTU to a consultation after the Court of Appeal awarded the Free Tax award to MPs entitlements.

Mr Tuhanuku confirms they have assured to revoke the Tax-Free Award to Members of Parliament by 1st April this year.

“As from the 1st of April this year after their consultations, we have been assured by the PEC that they will revoke the tax-free element so as far as SICTU is concerned, the tax-free issues is now a debt issue as we have arranged it that way. We leave it to the PEC and the Income Tax Commissioner to work out the details, looking at the effects of what it should do to ensure there is fairness to the public but at the same time fair to the Members of Parliament.”

Meanwhile, Mr Tuhanuku proposed for the government to make a major review of the current tax system.

“Now that the issue has emerged, we would like the Government to set up a major review of our tax system and I think that our current Prime Minister is familiar with this area because he was once working with taxation before going into politics.”

The Parliamentary Entitlements Committee is continuing with its consultation ahead of the revocation of the Tax-Free Award to Members of Parliament.