Local farmers in Tonga have expressed concerns following the government’s decision to reinstate taxes on agricultural goods imports. Sinai Tu’itahi, Secretary of the Grower Federation of Tonga, told the Tonga Broadcasting Commission (TBC) in an interview that the cabinet made this decision without consulting local growers. Tu’itahi said that this move would lead to higher prices for agricultural products, with the burden falling on consumers.
The consumption tax (CT) exemption on agricultural goods, fertilisers, and equipment has been in place since 2004. However, the acting CEO of the Ministry of Agriculture, Mikaele Saipa’ia, said that since the Competent Authority does not control agricultural prices, farmers are responsible for setting them.
Piveni Piukala, MP for Tongatapu No.7, raised the issue in parliament, stressing that consumers will face increased costs due to the government’s decision. In response, Finance Minister Hon. Tiueti explained that re-introducing the CT policy, only for two years until September 2026, aims to assess the agricultural sector’s performance and contribute to economic development.
The Ministry of Customs and Revenue told TBC that the decision was also driven by concerns that the agricultural sector was underperforming, with some farmers exploiting the previous tax exemption.
