The Permanent Secretary (PS) for Ministry of Finance & Treasury (MoFT) Fred Fakari has told the Public Accounts Committee (PAC) hearing that government has imposed a 20% export duty on bauxite shipment.
This was in response to a question from the PAC Chairman Rick Hou asking about the value of substantial amount of soil being exported.
“Three shipment of bauxite have gone so far and government decide to impose 20% export duty payable to the government apart from royalties,” the PS stated. “For the first two shipments nothing was imposed because government just realized this and impose duty on the third shipment,” he added.
He said that the previous two shipments do not pay the export duty because tariff of bauxite that time was free, so government realized and imposed the 20% rate later.
He pointed out that for any future bauxite shipment they will have to pay this 20% rate for export duty.
The PS further stated that the value of bauxite was agreed upon by MoFT and Ministry of Mines & Energy, a 20% based on what they called dry metric tonne.
“We calculate this by using a formula base on dry metric tonne,” the PS stated. At this stage the only bauxite operation in the country, which is on Rennell Island is in question after the office of the Attorney General (AG) chambers has recommended cancellation of the mining lease for Asia Pacific Investment Development (APID).
