The Minister of Finance, Hon. Johnny Koanapo, has revealed plans to introduce an income tax for public servants, including the Prime Minister and Ministers, as part of the government’s broader strategy to enhance national revenue. During an interview on VBTC’s Stret Tok program, Minister Koanapo outlined that individuals earning over one million vatu annually would likely face a tax rate between 12% and 15%, while those below this threshold will be exempt

“Vanuatu needs to implement an income tax system so we can improve our healthcare and education sectors,” said Koanapo. “In countries like Australia and across Europe, income tax is vital in funding essential public services. It’s time for us to take responsibility and ensure every child in Vanuatu has access to quality education, and that our healthcare system becomes stronger and more sustainable.”

The Minister stressed that this tax reform is part of a wider effort to build a fair, sustainable revenue system that supports national priorities. Importantly, the proposal indicates that public servants, along with the Prime Minister and all Ministers, will be subject to the new income tax. This demonstrates the government’s commitment to shared financial responsibility in strengthening the nation’s fiscal future.