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2007 Assessment

Vanuatu: Integrity Indicators Scorecard

Vanuatu: Integrity Scorecard Report > Sub-Category: Taxes and Customs
Indicators		Score
58	In law, is there a national tax collection agency?	100
59	Is the tax collection agency effective?	100
60	In practice, are tax laws enforced uniformly and without discrimination?	50
61	In law, is there a national customs and excise agency?	100
62	Is the customs and excise agency effective?	100
63	In practice, are customs and excise laws enforced uniformly and without discrimination?	50

Indicator and sub-Indicator Details

In law, is there a national tax collection agency?

58: In law, is there a national tax collection agency?

Score:

YES

Comments:

References: Rates & Taxes Department

Is the tax collection agency effective?

59a: In practice, the tax collection agency has a professional, full-time staff.

Score:

100

Comments:

References: Daily Post Chief Editor Kierry M. Ombudsman Office

59b: In practice, the tax agency receives regular funding.

Score:

100

Comments: From the government budget

References: Daily Post Chief Editor Kierry M. Ombudsman Office

Peer Review Comments: Yes, but as with other departments, this does not mean it has enough resources.

In practice, are tax laws enforced uniformly and without discrimination?

60: In practice, are tax laws enforced uniformly and without discrimination?

Score:

100

Comments: The IMF report in particular indicates that there is still too much exemption and non-uniformity in the application of tax, in spite of efforts to improve tax collection.

References: IMF Report on Consultation with Vanuatu Government - www.imf.org/external/np/sec/pn/2007/pn0727.htm Interview with Kierry Mannesah, Daily Post Chief Editor

Peer Review Comments: Vanuatu is a tax haven or offshore finance center which has no personal income tax and very few other direct taxes (except a tax on rental income from property investment in Vanuatu). Most taxes are indirect such as Value Added Tax (VAT) and excise duties on imports and exports. There is also a turnover tax on business. This means that there is discrimination between wealthy expatriates, foreign tax exiles and naturalized citizens on one hand, who pay little of their income in tax, and the Indigenous majority who pay a much greater proportion of their incomes (where they earn them) in indirect taxes. The tax system is regressive in Vanuatu.

In law, is there a national customs and excise agency?

61: In law, is there a national customs and excise agency?

Score:

YES

Comments:

References: Customers Department; Customers Act - www.paclii.org/vu/legis/consol_act/ca124/

Is the customs and excise agency effective?

62a: In practice, the customs and excise agency has a professional, full-time staff.

Score:

100

Comments:

References: Daily Post Chief Editor Kierry M.

62b: In practice, the customs and excise agency receives regular funding.

Score:

100

Comments:

References: Daily Post Chief Editor Kierry M.

In practice, are customs and excise laws enforced uniformly and without discrimination?

63: In practice, are customs and excise laws enforced uniformly and without discrimination?

Score:

100

Comments: The IMF report in particular indicates that there is still too much exemption and non-uniformity in the application of tax, in spite of efforts to improve tax collection.

References: IMF Report on Consultation with Vanuatu Government -www.imf.org/external/np/sec/pn/2007/pn0727.htm Interview with Kierry Mannesah, Daily Post Chief Editor