(Reitana)

Tera te Excise Tax?

• Te tax ae ena makuriaki iaon boon kaako aika a kaoaki ao aika a karaoaki mai tinanikun Kiribati n aron te kamanging, te baake ma moko tikareti, bao ni mamananga, ao te tioka.

Tera te Value-Added Tax?

• Te VAT bon te tax ae na makuriaki iaon boon kaako ma makuri ake ana karaoaki mai itinanikun Kiribati, ni ikotaki ma bon oin ara karaobwai ma makuri ake a tauaki mwia iaan te karikirake.

• Te tax iaon boon te kaako ngke e moan karokoaki

ma ena ikotaki ma boon te kaako ngkana e nang manga kabonakoaki. Aio te system n totokoa okiokin tiatiankin te tax.

• Karikirake ake a tauaki mwia, a kona ni claim ba aia

credit iaon aia kabanemane ao ni manga tiati te VAT iaon kaako ngkana a nang kaboakinako.

Tera ae na riki nakon boon kaako?

• Ibukina ba angin kaako ake a kaoaki a rangi ni bu-bura aia Cutoms Duty, te VAT ngkanne e na kona n onea mwin te Custom Duty. Are nanona ba a kona ni;

- keerikaki booia ngkana e uarareke riki te VAT na-kon te Custom Duty.

- keerake booia ngkana e bubura riki te VAT nakon te Custom Duty.

• Tabeua mai ibuakon ake a na keerake booia man

mwaitin te tiait iaon makuriana imain manga kabo-anakoana. Katoto te bwa (fuel) ibukin te booti n aka-wa ao bao ni mamananga.

Tera riki baai aika a karaoaki ?

• E a tia ni katauraoaki te tua ae aranaki bwa Te Rev-enue Administration Act (RAA). Aio te tua are e karaoi kainibaire iaon makurian ao tararuakin ka-rekemane iaon te Income Tax, VAT ao te Excise Tax.

• N te tua aio are ena kamatoaki iai aron kabonganan

te numba ae ti teuana, Tax Identification Number (TIN) ibukin te Tax ma te Customs. Ena rangi ni ibuobuoki nakoia business ibukin baika a na kainanoaki man aobiti aika uoua aikai.

• Ena kamatoaki naba iai kainakin business aika tei-matoa n aki kakaonimaki nakon karokoan ke nikirak-in aia returns.

• Ena iai naba te bitaki nakon te tua iaon te karekema-

ne bwa ena kakerakeaki riki te mwaiti ae ena moa te kabwaka tax man $4,001 nakon $5,001. Are nanona bwa koraki ake raka aia karekemane iaon $4000 n te ririki, ena kerikaki aia tax n te mwaiti ae $200 n te ririki.

Ena moanaki ke ni waakinaki ningai?

• Ena manga warekaki te kauoua n tai n ana kabowi te Auti ni Maungatabu n Novemba 2013.

• Ngkana e b’aati te tua aio ao te kantaninga ba ena

kabonganaki te bitaki aio man 1 Eberi 2014. Ana reke ia rongorongon te bitaki aei?

• N te tai are e b’aati iai te tua man te Auti ni Maunga-tabu ao ikanne are ea karaoaki naba iai kamatata/kaongora iaon te rerio, nutibeeba, ao taian reirei n

TAX REFORM

What is

Value Added Tax?

Excise Tax?

Revenue Administration Act?

• Boon baai ake ana kabonakoaki a kona n reke man aikai; - karokoakin ao karaoakin (import & manufacture)

• - tangirakina / kainanoakina • - kaiangatoa iaon te tia ni boo irouia bitineti

MFED

Why is the Government doing this?

• Agreements with our trading partners require the abo-

lition of Customs Duties. But these are a major

source of revenue for Kiribati, so they need to be re-

placed by other revenues.

• Excise and VAT are levied on consumption. They

are a fair way to collect tax because those who con-

sume more can afford to pay more tax.

• The Government needs to raise revenue so that it can continue to fund things like health, medicines, educa-tion and build a better Kiribati .

What is an Excise Tax? • A percentage tax on the cost of certain imported and

manufactured goods. It is expected to be charged on

alcohol, tobacco and cigarettes, motor vehicles and

sugar.

What is a Value-Added Tax? • A percentage tax on the cost of most imported goods

and services, and on most locally produced goods and services provided by registered entities

• A tax is imposed on importation and then on the value added at each point of sale. A credit system

will stop a tax on a tax. • Registered entities will claim credits on the VAT they

pay on their inputs and will charge VAT on their out-puts

What about prices? • Many imported goods are now subject to high

Customs Duties. Often the VAT rate will be less than the rate of Customs Duty that will abolished, so the prices of some goods may fall. Where the VAT rate is greater than of Customs Duty, the price of those goods may rise

• Some locally produced goods may go up in price

due to increase in costs of inputs such as fuel for fishing boats and transport.

• The price you pay for something will be the result of a number of things: including the cost to import or produce, whether taxes are imposed, supply and demand, the level of competition between suppliers, and any price controls imposed.

What else is happening?

• The Revenue Administration Act (RAA) has been drafted. This provides for standard procedures and rules for the administration of Income Tax, VAT and Excise Tax.

• The RAA will also provide for a Tax Identification Number (TIN). A business will use the one TIN for all its obligations under Tax and Customs laws. This will help businesses in dealing with Customs and the Tax Division, and will help ensure compli-ance.

• Provision for the temporary closure of a business for repeatedly failing to file returns.

• An amendment to the Income Tax Act to increase the tax threshold from $4001 to $5001, as a com-pensation measure for the effects of VAT and Excise on prices. This means that people who earn more than $4,000 a year will pay up to $200 less in PAYE Income Tax.

When does all this start?

• Parliament will hold second readings for these reforms at the next Parliamentary sitting in No-vember 2013.

• If the laws are passed, it is expected these re-

forms will commence from 1 April 2014.

Where can I get more information?

• In coming months more information will be provided on radio, newspapers, pamphlets, and in workshops, especially once the laws are passed.

• Tax Division, Ministry of Finance and Economic De-

velopment, Bairiki or ring this number 21806. &&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&& Iango ibukin te bitaki nakon te Tax Iai te bitaki nakon te Tax System are ea tia ni b’aati moan

warekana n ana kabowi te Auti ni Maungatabu n Aokati

2013 n aron aikai: 1. Te Value Add ed tax (VAT) iaon angin kaako ma ma-

kuri (cargoes & services) 2. Te Excise Tax iaon kaako tabeua 3. Te Revenue Administration Bukin tera te Tautaeka e karaoa aei?

• Te boraraoi ma ara Itabon nte Iokinibwai a tangira

kamaunaan te Custom Duty. Ma ibukina ba aio naba

angatain ana karekemane te Tautaeka ao e bon riai

ba ena karekeaki onean mwina n karekemane ta-

beua.

• Te Excise ao VAT a bon tiatinaki iaon te mwaiti ni

mane are e e kabaneaki. Aio te aro n riko tax ae aki

babakanikawai ibukina bwa koraki ake a bobai, bon

ngaia aika a na kabwaka tax.

• Te Tautaeka e tangiria ni karekea te karekemane

bwa ea aonga n teimatoa ni kona ni mwanen

kabanemwane n aron kamarurung, bain-aoraki, reirei

ao karikirakean Kiribati nakon te tamaroa.

Proposal for Tax Reform The taxation system is being reformed. At its August 2013 sitting, Parliament passed first reading of bills for 1. Value Added Tax 2. Excise Tax 3. Revenue Administration .