Where does your candidate stand on INCOME TAX

January 29, 2020 8:00 am | Posted in Opinions | Share now TwitterFacebook

By Ian G Kerr, Investor in Vanuatu.

In a 2017 speech to the Australian Vanuatu Business Forum, Australian Deputy High Commissioner Susan Ryle explained to attendees that the Private Sector is the engine of economic growth worldwide. Speci fi cally attendees were informed that in developing countries the private sector generates 90 percent of jobs, funds more than 60 percent of investments, contributes more than 80 percent of government revenue and produces most goods and services used by the community.

So why has growth in the private sector stalled in Vanuatu?

For people to invest their capital and to commit to operate a business in an open market there needs to be an incentive to do so and certainty on the rules and conditions of trade. The dark cloud of a looming Income and Corporate Tax has had a detrimental effect on attracting new investors and successfully extinguished the enthusiasm and con fi dence that are key components to private sector growth.

Vanuatu does not need an Income Tax and a Corporate Tax!

A Government committed to not introducing these complicated taxes would provide an immediate boost to the Economy and restore business con fi dence.

What can voters do to help build a buoyant private sector?

All candidates in the coming elections will be given the opportunity to committee to voters by signing a NO INCOME TAX Integrity Pledge. These candidates, regardless of their Party will be promoted as, committed, Integrity Pledged, NO INCOME TAX candidates. The NO INCOME TAX Integrity Pledge will be launched to voters on February 1st in the Daily Post and available to all candidates who wish to sign.

I encourage all Vanuatu Voters to take note of the Australian Deputy High Commissioner’s comments and support and vote for candidates that have signed the NO INCOME TAX Integrity Pledge.

This is an “opinion piece” and not the opinion of the publisher

Ian G Kerr, Authorised Tax Collector & Payer, Investor & Employer, President Vanuatu Tourism Owners Association