Government and the private sector came together this week at a Revenue Forum organized by the Ministry of Finance, to discuss ways Vanuatu can strengthen revenue collection and support national development.

A key theme raised at the forum was the need to make it easier for foreign investors to enter Vanuatu. Catherine Boudier of First National Real Estate said the government must create a more open and welcoming environment for investors.

“If a country doesn’t have anything to sell to generate money, shouldn’t you import the money from overseas? Open the borders, make Vanuatu more friendly. If people come, they will spend money, buy cars, employ people, and government will collect more VAT,” Boudier said.

On the other hand, Anthea Arnhambat of AHPI Stationery argued that Vanuatu imports too many goods and should instead focus on local production.

“We import things we can produce ourselves. Every household uses sugar and eggs, yet these are imported. Provinces can produce our own sugar and eggs,” Arnhambat said.

Agriculture products like kava were also highlighted, with calls for government to strengthen revenue collection from the kava industry.

Customs Department Director Harold Tarosa reported that his department has collected 62% of its revenue target from Value Added Tax (VAT), amounting to over 14 billion vatu.

However, businessman Adam Lopez said while government is focusing on revenue, there also needs to be more clarity on expenditure.

“That is a lot of money for a small country like Vanuatu. What are you spending it on? If you share expenditure with the private sector, we can understand and provide the right advice,” Lopez said.

Prime Minister Jotham Napat and his Deputy, Finance Minister Johnny Koanapo, commended the discussions and stressed the importance of thinking about development needs across all islands.

“Look at the VAT being collected demand for roads in Port Vila is increasing, but what about cattle and copra in Santo? We cannot access these without enough revenue. Even the Santo Pekoa International Airport upgrade costs more than 18 billion vatu in VAT collected. It’s not enough,” Koanapo said.

Participants called for more open dialogue between government and the private sector, to ensure transparency and sustainable economic growth.