The Minister of Finance and Treasury, Hon. Gordon Darcy Lilo, has ordered the termination of all Memoranda of Understanding relating to tax exemptions in the mining, forestry, and fisheries sectors, effective immediately.
A statement from the Ministry said the move closes fiscal loopholes and ensures all tax exemptions comply with the law.
Under the current legislation, authority to grant exemptions rests solely with the Revenue and Customs Exemption Committee.
While the Minister has signed some MoUs in the past, he does not have the legal power to approve exemptions outside this process.
“Any fiscal arrangements previously covered under MoUs will no longer be recognised,” Minister Lilo stated.
All resource sector companies are directed to comply with existing legislation and regulations, and to submit any exemption requests through the Revenue and Customs Exemption Committee.
The Ministry said the decision strengthens fiscal management, safeguards public revenue, and ensures a level playing field for all investors.
