THE Legislative Assembly unanimously passed the Revenue Services Administration Bill 2020 paving the way for effective electronic means of generating revenue and maintaining tax collection records.
The vote was 19 in favour and no opposition.
The Bill requires all businesses to have a sales register device for recording sales and related data.
The Hon. Minister for Inland Revenue and Customs Tevita Lavemaau said the Bill will help collect and recover some unpaid tax. Through electronic records that will help to determine the actual amount of tax revenue collection per financial year.
Meanwhile the Acting Justice Minister Hon. Sāmiu Vaipulu said the enforcement of the Act will be a joint effort by the Labour and Trade Ministry and the Inland Revenue. He stressed the need for businesses to comply and must have a cash register before issuing and renewing of business licenses.
He said the much-needed Bill will help to record the correct amount of tax revenue collected and also for consumer protection.
"Customers will see the actual price of goods when given a receipt for every purchase they make and do away with using of a calculator for calculation." Hon. Vaipulu said.
The Bill is a consolidation and modernisation of the Revenue Services Administration Act, 2002. It is primarily related to self-assessment, recovery of unpaid tax, and the electronic tax system and will align Tonga’s legislation with that in other Pacific Island countries including Fiji and Samoa.