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Solomon Islands to Repeal Travel Agent Tax

February 14, 2007 By: David Eisen Travel Agent

The Solomon Islands' government is set to implement a plan that would make tour operators exempt from having to withhold taxes on offshore payments to travel agents facilitating bookings. The islands' Minister of Finance, Gordon Darcy Lilo, said the small amount of revenue gained from the taxes would be offset by the economic gains of a better-operating tourism industry. The plan only concerns bookings that do not exceed a 10 percent commission. Any payment in excess of that amount will still be liable for the withholding tax.

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