REGULATORY FRAMEWORK –> Custom Duty
The Industrial Incentives Development Scheme gives Custom Duty exemptions on a case by case basis to few industrial businesses that are eligible. (Please refer to notes on “Investment Incentives.” The scheme is being repealed in compliance with the WTO terms on Tonga’s accession. However, work is currently undertaken to bring down the rate on Customs Duty to 15% - 20%. At the same time, under the new Customs and Excise Regulation (ie. yet to be implemented), all inputs to the industrial sector will be free from payment of Customs Duty.
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