Government open to discuss controls over foreign exchange says Finance Minister Featured
Tonga's Minister of Finance Pohiva Tui'onetoa
15 January, 2019. Tonga's Finance minister, Pohiva Tu'ionetoa, says he is open to looking at the country's new Foreign Exchange Control Act.
The act has been criticised by businesses but Mr Tu'ionetoa said it was aimed at ensuring Tonga has sufficient foreign reserves.
Businesses fear it will undermine their activities and at least one is promising to cut back substantially.
Mr Tu'ionetoa said previously many exporters didn't bring the earnings back into the country and the act requires that up to 60 percent of profits should be repatriated.
The minister said while the changes had been made for the benefit of all the country he was willing to discuss the businesses concerns with them.
"I am trying to discuss these issues to see whether their underlying accounts indicate what they profess to be doing - to be the actual reasoning of their argument against this particular control."
Pohiva Tu'ionetoa said the exchange control changes may not be the basis of the businesses concerns.
- RNZI
2 comments
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Ko e me'a eni 'oku ui ko e TE'EKII PEA TOKI FAKATA'ANE, 'ikai kemou nofo pe ke 'osi e kau pisinisi he tapuni pea mou toki fakamolu. Fakapiko mo'oni.
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WITH ALL DUE RESPECTS HON. FINANCE MINISTER...Concerns in the business community are legitimate fears of a government hell-bent on dismantling established practices that have been productive. Instead of facilitating business growth, which helps reduce unemployment, they're spending on a "dumpster" park project at an abandoned landfill (tu'ungaveve). The Economist Magazine's Intelligent Unit has published their studies concluding that Tonga's fishing industry has been killed by "onerous" taxation that scare investors away. Now government may deliver another blow to the fishing industry with unfavorable currency manipulations.