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Tuesday, October 18, 2016

Solomon Islands Court Approves MPs' tax-free salaries




MPs in the Solomon Islands won't have to pay tax on their parliamentary salaries, after a court ruling ended a long-running dispute on the issue.

There was a public outcry in the Pacific island nation in May 2015, when a parliamentary commission voted to exempt MPs' earnings from tax.

A year later, the High Court srcapped that decision ruling it unconstitutional because the commission failed to consult the relevant authorities first.

But now the Court of Appeal - the Solomon Islands highest court - has said that MPs can benefit from tax-free salaries after all. It ruled that while the policy may be unpopular with the public, it's still legal

Solomon Islands, former British protectorate is one of the Pacific's poorest countries, and receives Millions of Dollars in Aid  from Australia each year.

Non-profit group Transparency Solomon Islands criticised the court's decision, saying it "has created an unstoppable monster". "The decision is not necessarily morally ethically, responsibly correct or good for the well-being of our people and the development of our country,"

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