The Vanuatu Government is set to introduce income tax, a change that will affect every employer, employee, and household across the country.

The Ministry of Finance and Economic Management (MoFEM) will host a Revenue Forum with the private sector today, Wednesday 27 August, from 9am to 12 noon at the Warwick Hotel in Port Vila. The forum will discuss the government’s proposals and provide a platform for stakeholders to engage directly with policy makers.

The planned income tax is intended to create a fairer system in which all individuals and businesses contribute to the nation’s development. Local entrepreneurs earning less than VT5 million annually have long raised concerns about the current arrangements, which see small-scale businesses paying the same proportion of taxes as multimillionaire enterprises. Many wealthy business owners operating in Vanuatu are reportedly taking advantage of loopholes to reduce their tax contributions, according to sources within the business community.

“It’s time now for everyone to pay their fair share,” said one local entrepreneur. “Small businesses have been carrying a heavy burden while the wealthy benefit from gaps in the system. Income tax will help level the playing field.”

Economists note that the introduction of income tax could bring major benefits to Vanuatu’s economy. By generating additional revenue, the government would be able to invest more in infrastructure, health care, education, and public services, helping build a stronger and more sustainable economy. A fairer tax system could also improve investor confidence, attract foreign investment, and reduce dependence on external aid.

The Vanuatu Chamber of Commerce and Industry (VCCI) has called on all businesses to attend the forum and contribute to shaping the proposed system. The government has assured that the process will be transparent, inclusive, and designed to support economic growth while ensuring fairness for all citizens.


SOURCE: VANUATU DAILY POST