Decision time in Vanuatu about tax
VANUATU has only one good fiscal policy and that’s the absence of an income tax, says a leading American tax expert.
Dan Mitchell, speaking to The Independent this week, said the country must not lose this special advantage.
“It is one of the world’s friendliest tax systems according to the Index of Economic Freedom and is in second place behind only the Bahamas,” he said.
“I’m jealous that Vanuatu is one of the few places in the world that doesn’t have any personal income tax, no corporate tax, no capital gains tax and no death tax.
“But the absence of an income tax bothers some outsiders. Nations such as Australia and international bureaucracies such as the World Bank are pressuring politicians in Vanuatu to adopt an income tax.”
“And they’re playing dirty, trying to bribe and extort lawmakers with promises to provide more aid or threats to withdraw existing aid.”