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By Kalvau Moli

PORT VILA, Vanuatu (Vanuatu Daily Post, July 1) – Vanuatu Political leaders have attacked the government’s tax policy, saying a regressive tax system has gravely affected the delivery of public services.

Dinh Van Moi, currently spearheading Vanuatu National Party campaign in Luganville and Sanma, said voters should be aware that the government’s tax policy is choking the country.

"Voters are exhausted because increased tax has made them poorer," said Moi. "Therefore it is proper that we replace the current coalition."

He said if Natapei stays on, Vanuatu will soon witness the introduction of an income tax.

"When is it not enough?" he asked.

He warned that Vanuatu’s tax base must be reviewed and more incentives should be given to ni-Vanuatu projects so that they are tax-free for a certain period of time to allow them to grow.

"Debit tax must be addressed to have the threshold reviewed while capital flight through Vanuatu must be taxed. Our Shipping Registry also collects a lot of revenue from taxing flag bearers, but we have not seen any benefit from revenue raised," Dinh claimed.

July 2, 2004

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