The Marshall Islands looks set to re-writing its entire tax structure in January next year, reports Radio New Zealand International.
For the past two years, the government has been drafting new tax legislation, which includes the introduction of Value Added Tax (VAT).
Our correspondent in Majuro, Giff Johnson, says a motivating factor for the proposed shift away from import tax to a VAT relates to trade with Europe and other Pacific nations.
“The country is trying to come into line with the European Union and Australia-New Zealand-Pacific free trade deals that are being negotiated slowly and the import duty which actually now is one of the primary revenue generating taxes for the Marshall Islands would violate those free trade provisions with these other countries if they ever come to pass.”
The draft plan is scheduled to go before the first session of Parliament in January next year, following the general election on November the 21st.