The SHTA has taken note of Finance Minister, Hiro Shigemoto’s explanation regarding the TOT legislation and understands that there are amendments that should make the legislation more clear. However, the SHTA maintains that its interpretation of the published legislation was correct.
Furthermore, the SHTA believes that the amendment of the existing legislation should have ONLY reflected the change from 3-5% along with the adjusted exemption items. The fact that other articles were altered and that the process to approve the legislation had been rushed without proper dialogue, left the SHTA with no choice but to comment publicly.
The SHTA understands that it is not the intention of the Minister of Finance to implement an import duty (it was an oversight) and that a corrective law will be issued, however if there is no follow up and the correction is not published, the legislation for an import duty intermingled within the Turnover Tax legislation will hold.
The SHTA believes that this confusion could have been avoided had the Ministry met with stakeholders to review the draft legislation before publishing it. It is for this reason that the SHTA is again reiterating the need for closer cooperation between public and private sector even more so now with the vast task ahead of designing a new tax structure for 2012.
The SHTA would also like to clarify that while Paul van Vliet through PWC is a member of the SHTA, he has not held a position on the Board of the SHTA for the past 3 ½ years.
We understand that it wasn’t your intention however it was read how it was published online.
We appreciate your explanation nonetheless this is how it was read (we’re correct in how we read it).
1. We’re all about public private partnership and happy to hear that he’s in agreement with that and that’s why we stress the need for closer cooperation especially going forward with the need to develop a new tax system for 2012. (We accept the explanation and that there are some amendments that should’ve made it more clear).
2. We believe this is a result of the fact that they’ve rushed through without proper dialogue and to stress that this is the reason that we would like to see closer cooperation considering that we’re going to be designing a new structure for 2012.
3. We’ve always advocated for partnership etc.
4. It’s because they’re rushing the approval it has left us no choice but to comment.
5. Paul not a board member.
6. Whole thing could have been avoided if Finance ministry had sat with Private sector to discuss the draft.
7. They are the ones who created the confusion. Change 3-5% and change exemption items.