Minister Lilo launches tax policy work programme as government rolls out VAT consultations

Honiara, 02 September 2026 — The Minister of Finance and Treasury, Hon. Gordon Darcy Lilo, yesterday officially launched the Government’s Draft Tax Policy Work Programme at Heritage Park Hotel, calling it a key step toward a fairer, more transparent tax system for Solomon Islands.

Speaking to representatives of the private sector, business community, NGOs and the accounting profession, the Minister said the programme will set out clearly what tax reforms are coming and when.

“This consultation is about transparency. The GREAT Coalition is committed to strengthening our economy and improving our ability to deliver for the people of Solomon Islands. A strong and sustainable revenue base is part of that,” Minister Lilo said.

The Minister emphasised that tax policy is not just about collecting more revenue.

“It is also about having a system that is fair, understandable and capable of being administered properly, while recognising the environment our businesses and taxpayers operate in,” he said.

The Work Programme was developed jointly by the Ministry of Finance and Treasury, Inland Revenue Division, and the Economic Development Division to ensure reforms align with both revenue goals and the wider economy.

A major focus of the launch was the Government’s decision to introduce Value Added Tax [VAT].

“Let me be clear. The Government has made its policy decision on VAT. The fundamental design has been settled. Today is not about reopening that decision. Today is about understanding what is in the VAT Bill, what it means, and what businesses need to do to prepare,” the Minister stated.

Businesses will need to get ready for VAT registration, invoicing, record keeping, charging and reporting VAT, and claiming input tax credits. The public will also need to understand how VAT applies to goods and services and how it may affect prices.

“We do not want businesses to reach implementation day and discover they do not understand their obligations. Preparation starts now,” Minister Lilo said.

Inland Revenue will lead training, system upgrades, taxpayer registration and public education. The Economic Development Division will assess broader economic impacts to ensure VAT supports national fiscal goals.

Minister Lilo said VAT and the wider tax reforms are not just an Inland Revenue issue.

“This is a whole-of-Government reform. It will require cooperation from Government agencies, businesses, professional advisers and the wider community,” he said.

The Government will roll out further information sessions, workshops and guidance in the coming months. Some reforms in the Work Programme are still at policy development stage and will involve further consultation. For VAT and other decided reforms, the focus now shifts to education, preparation and implementation.

“Our objective is not simply to introduce new taxes. Our objective is to build a stronger, fairer and more sustainable tax system that supports domestic revenue mobilisation, improves compliance, and gives Government the resources to deliver essential services,” the Minister concluded.

He formally opened the consultation and thanked stakeholders for their engagement.

-ENDS-