KINGDOM OF TONGA - SPREP

Strategic Development Plan 8 2006/07-2008/09
management for sustainable resource utilization. The Aquaculture Act provided
for the environmentally responsible development of aquaculture.
Under existing legislation, sales of agricultural commodities remained free
of income tax, except where a company structure was in place, in which case
company tax was payable. Agricultural inputs continued to be free of import
duty, and in June 2005 were exempted from consumption tax and subject to a
zero rate. Tax expenditure allowed under Development Licenses is shown in
Table 1.1.
The Ministry of Agriculture, Food and Forestry reviewed its
organizational structure and decided to refocus on the core functions of research
and extension, market information, regulation and quarantine. An Institutional
Strengthening Program aimed at improving service delivery in these core areas,
while the Ministry withdrew from commercial activities such as ‘Eua Forestry
and the Machinery Pool. This reorientation was encapsulated by the Ministry’s
provision of the initial research, extension and development inputs for the
fledgling coffee industry, before transferring the activity to the private sector for
full commercial development. Notable projects included the recommissioning of
the High Temperature Forced Air facility at Fua’amotu Airport, which will allow
the export of breadfruit, tomatoes, capsicum, eggplant and pawpaw to New
Zealand. The Government also invested in two blast freezers, which will preserve
the quality of individual growers’ root crops.
In 2005, a separate Ministry of Forestry was created, leaving a Ministry of
Agriculture and Food. The combined budget allocation for these ministries in
2005/06 was $5.3 million, or 3.0% of the total budget.
In the fisheries sector, individual producers are, like agricultural
producers, exempt from income tax. Additionally, sector development was
promoted by the establishment in February 2000 of a fuel concession scheme for
fish exporters, which has been monitored by a fuel concession committee chaired
by the Secretary for Fisheries. Table 1.1 shows the magnitude of the tax
expenditures involved in recent years.
The Ministry of Fisheries focused on ensuring the sustainable
development of fisheries. The Fisheries Management Act 2002 and the
Aquaculture Act 2003 already have been mentioned, with both requiring drafting
and approval of regulations before they can become effective. In June 2001 the
Tonga National Tuna Management and Development Plan was released, the key
objectives being sustainability of resource use and realization of benefits to
Tonga from the exploitation of tuna resources. The Plan is managed and
monitored by the Tuna Management Committee, which includes Government
representatives, non-government organizations and private sector
representatives. Throughout 2000-2005, the Ministry of Fisheries received
substantial support through an AusAID-financed project, though
Looking to the Future, Building on the Past 10