Samoa is looking to make the most from customs duties to boost government revenue through the Pacific Agreement on Closer Economic Relations (PACER) Plus.

The PACER Plus Implementation Unit (PPIU) hosted the second Revenue Mobilisation Talanoa for PACER Plus Signatories last week in Apia.

Customs duties account for a significant portion of government revenue, the stakes are particularly high. Magotaamu Salanoa, the Principal Customs Officer-Trade with Samoa's Ministry of Customs and Revenue, stressed the importance of collaboration and knowledge-sharing.

"Samoa, like many Pacific countries, relies on customs duties for revenue. The discussions here have been invaluable in helping us identify practical solutions to mitigate revenue losses while exploring new opportunities to diversify our tax base. The insights gained from this Talanoa will guide our efforts to strengthen Samoa's economic resilience," said Mr Salanoa.

The Talanoa brought together senior officials from customs, tax administrations, and finance ministries across the Pacific to address the challenges and opportunities of revenue mobilisation in the context of trade liberalisation under PACER Plus. Representatives from the Cook Islands, Kiribati, Niue, Samoa, Solomon Islands, Tonga, Tuvalu, and Nauru attended the four-day event from 25-28 February 2025.

The Talanoa, which follows the inaugural Revenue Mobilisation Talanoa held in Nadi, Fiji, in February 2024, focused on improving indirect revenue mobilisation through efficient taxation, broadening the tax base, and closing the tax gap. Participants explored short-term actions and long-term structural reforms needed to enhance revenue administration and collection.

Alipate Tavo, Trade Adviser at PPIU and moderator of the workshop, highlighted the importance of the Talanoa in addressing the region's unique challenges.

"The PACER Plus Agreement has brought economic opportunities to the Pacific, but it has also highlighted the need for robust revenue mobilisation strategies. This Talanoa has been a critical platform for sharing experiences, identifying best practices, and developing actionable plans to ensure that our countries can adapt to the changing economic landscape while maintaining fiscal stability," said Mr Tavo.

Pipiena Tanaki, the Deputy CEO of Tonga's Ministry of Revenue and Customs, shared her perspective on the role of technology in improving revenue collection.

"Modernising our customs systems and leveraging technology is important for improving efficiency and accuracy in revenue collection. This workshop has reinforced the importance of investment in capacity building and digital solutions to address the administrative gaps in our tax systems," said Ms Tanaki.

The workshop featured sessions on key topics such as the role of customs administrations in collecting Value Added Tax (VAT) and Goods and Services Tax (GST), the impact of trade liberalisation on revenue, and strategies for optimising revenue through tax policies. Understanding the impacts of tax expenditures on revenue collection and good tax administration practice to improve revenue collection were also covered. Additionally, participants discussed the challenges of cross-border e-commerce, valuation issues, and the need for regional cooperation to address complex revenue mobilisation challenges.

The Revenue Mobilisation Talanoa has been organised in collaboration with the Pacific Financial Technical Assistance Center, the Pacific Islands Tax Administration Association, the Oceania Customs Organisation, and the International Monetary Fund.

"As we implement PACER Plus, our customs administrations must evolve to meet new revenue collection challenges. This Talanoa provides a vital platform for Pacific customs agencies to share practical solutions and strengthen our regional approach to revenue mobilisation while facilitating trade modernisation," said Nancy Oraka, Head of the Oceania Customs Organisation (OCO).

The Revenue Mobilisation Talanoa has been organised in collaboration with the Pacific Financial Technical Assistance Center, the Pacific Islands Tax Administration Association, the OCO, and the International Monetary Fund. The workshop's outcomes will contribute to the development of a comprehensive roadmap for revenue mobilisation across the Pacific, ensuring that PACER Plus signatories can continue to fund essential services while promoting economic growth.

The Talanoa, which concluded on 28 February provided an opportunity to explore revenue mobilisation in the context of the impacts of PACER Plus but the need for revenue to fund the social and economic needs of countries is ever-present.