Tonga Raises

Source from:  Matangi Tonga 08/19/2013

Tonga's government has has imposed new Duties on unhealthy foods along with higher Excise Tax Rates on tobacco products, and slashed tobacco concessions for arriving passengers by half, in an effort to encourage "healthy living".

The Ministry of Revenue declared significant changes for carbonated drinks, lard and dripping which took effect on 14 August 2013.

Acting on the advice of the Ministry of Health, they  stated, "The new rates are part of the government's commitment to reduce non-communicable diseases by increasing the import rates of the unhealthy products and decreasing the import rates of healthy foods to encourage us all to live healthier lives."

The notice stated new rates for 10 categories.

Duties will drop from 20% to 5% for fresh fish, and tinned fish; and to 10% for vegetable oil.

On the other hand Excise tax rates were increased for lard and dripping, carbonated drinks, cigarettes and tobacco.

Excise on lard, dripping and carbonated  drinks increases from 15% duty to $1 per kg and $1 per litre respectively.

Excise on imported cigarettes increases from $210 to  $250 per 1000 sticks; Local cigarettes from $200 to $238 per 1000 sticks; Imported Tobacco from $210 per kg to $250 per kg; and Local Tobacco from $200 per kg to $238 per kg.

Tobacco concessions for arriving passengers have been decreased from 500 cigarettes to 250 cigarettes or 250 grams of tobacco. Enditem