Govt. to asses HOS tax exemption

The Deputy Prime Minister responded to a proposal to exempt the Heads of State from paying income tax, stating that the government would need to assess current laws.
Tuala Iosefo Ponifasio, who is also the Minister for Customs and Revenue [M.C.R.], addressed the issue during discussions on the 2024-2025 National Budget.
He acknowledged the suggestion but emphasised that any decision would require a thorough review of existing legislation.
Tuala pointed out that the proposal had sparked significant division and debate within and outside of parliament, noting that the previous administration had amended laws to remove tax exemptions for Heads of State and church ministers.
He reminded the opposition members as the call came from the opposing bench, that they had been responsible for these amendments and highlighted that the current government would carefully consider the suggestion.
"You were the ones who initiated the amendments and proposed exempting the Head of State and church ministers from taxation," Tuala said.
However, he acknowledged, "We've taken note of the suggestion. The Prime Minister, Cabinet, and our government have heard it, and we will explore the appropriate course of action."
A senior Cabinet Minister and Chairman of the ruling party, La’auli Leuatea Schmidt, expressed his views on the suggestion during an interview on the Soalepule this week.
La’auli was straightforward in his comments, echoing sentiments similar to those expressed by Tuala in parliament.
He pointed out that the Head of State and members of the clergy did not pay income until the amendments introduced by the former administration obliging church ministers and the Head of State to pay tax.
La’auli emphasised that the Head of State, being on the civil list and paid for by the government, should be subject to pay income tax like any other individual on the civil list. He contrasted this with church ministers and clergy members who are not government employees and thus have a different tax status.
The Income Tax Amendment Bill, passed by the Legislative Assembly in 2017, marked the first instance since Samoa's Independence that church ministers and Heads of State were required to pay income taxes.
Part of the Fa’atuatua I le Atua Samoa ua Tasi (F.A.S.T.) party’s manifesto included repealing this taxation law specifically targeting members of the clergy in Samoa.
Among the 38 denominations in the country, only the Congregational Christian Church Samoa, the largest denomination on the land, opposed this law.
Legal challenges ensued, with nearly 50 church ministers facing charges and appearing in court in 2019. However, the District Court dismissed these charges due to insufficient evidence provided by the prosecution, particularly regarding the defendants' identities and their status as ministers of religion.
In November 2021, following F.A.S.T.'s assumption of office, the Ministry of Customs and Revenue (M.C.R.) consulted with various denominations across Samoa as part of the Cabinet's directive to consider repealing the controversial amendments.
In an interview with the Samoa Observer at the time, Tuala disclosed that church leaders in Samoa had reached an agreement to repeal the taxation law.
Subsequently, Tuala publicly announced that the government had decided to immediately suspend the income tax policy affecting "ministers of religion."
