The Bills and Legislation Committee (BLC) of the National Parliament of Solomon Islands has commenced its inquiry into the Value Added Tax Bill 2025, a proposed law aimed at reforming and modernising the country’s tax system.
The inquiry began on March 11, with the committee examining the proposed legislation that seeks to simplify and modernise how taxes on the consumption of goods and services are imposed and collected in Solomon Islands.
If enacted, the bill will replace several existing tax laws by introducing a Value Added Tax (VAT) system aligned with those used across many Pacific economies and international jurisdictions.
Under the proposal, the Goods Tax Act (Cap.122), Sales Tax Act (Cap.125), and Stamp Duties Act (Cap.126) would be repealed and replaced by the new VAT framework.
The legislation forms part of Solomon Islands’ broader tax reform programme launched in 2007. As part of related reforms being pursued through separate legislative processes, most import duties may be reduced, except for those imposed on motor vehicles, fuel, alcoholic beverages, sugary drinks, selected plastics and tobacco. The current accommodation levy on tourist accommodation may also be removed.
Officials from the Ministry of Finance and Treasury (MoFT) and the Government Legal Draftsperson appeared before the committee as the sponsoring authority to present the bill.
However, after initial discussions, the committee adjourned the hearing to a later date, potentially on Friday this week or another date yet to be confirmed. The adjournment will allow the ministry to provide additional technical information through a detailed presentation to assist the committee’s deliberations.
During the session, ministry officials also informed the committee that they plan to conduct a workshop for all 50 Members of Parliament to ensure lawmakers fully understand the technical aspects of the proposed legislation before the committee resumes its hearings.
The BLC is also expected to invite a range of stakeholders to present submissions as part of the inquiry process. These include the Central Bank of Solomon Islands, the Solomon Islands Chamber of Commerce and Industry (SICCI), Our Telekom, commercial banks, the Chinese Association, the Solomon Islands Bar Association (SIBA), the Solomon Islands National Provident Fund (SINPF), the Economic Association of Solomon Islands (EASI), state-owned enterprises, tourism operators, the Guadalcanal Provincial Government and the Honiara City Council.
Meanwhile, the committee is set to begin its provincial inquiry next week into the Mineral Resources Bill 2025.
Further updates on the inquiry into the Value Added Tax Bill 2025 will be provided once the next hearing date is confirmed.
