Different and attractive

Investment report

FROM the tiny atolls of Kiribati to the large land-mass of Papua New Guinea, the Pacific region is marked by its diversity a diversity that makes investment in this region of the world both attractive and different.

Vanuatu Offshore investment can be arranged without visiting the country.

There are no direct personal or :orporate income taxes or gains taxes, withholding taxes or estate duty taxes for either investors taking advantage of the )ffshore status or those who live and work n the country.

Business opportunities available to the nvestor are in tourism, agriculture and

ight industry.

Tourism is the fastest growing area of levelopment, and investment in agricul ure is possible. Exporting agricultural •reduce is feasible. Industrial concerns re also encouraged by the government, i particular opportunities in manufac uring items to assist in import substi ution. *apua New Guinea The economy is largely dependant pon its natural resources. The country noted for producing copra, palm oil, Dcoa, tea and coffee, and an increasing umber of spices.

Forestry is also an important source of wenue.

A growing fishing industry is provid

ing another source of income, and tuna fishing and processing are seen as having the most opportunities for commercial

development.

Mineral and petroleum developments include gold and cooper mines.

Commercial and business enterprises concentrate on retail and wholesale trading, light manufacturing, transport

and shipping.

Solomon Islands The government seeks to encourage foreign investors with investment assist ance, and it is keen to see the develop ment of industries that will use and process natural resources. In particular, development of industries that produce products for export- and import substitution will receive substantial en couragement.

Opportunities also exist in tourism, forestry, fisheries, transport and mining.

There are several investment incen tives.

Kiribati The economy is dependent upon copra, salt, fishing and foreign aid.

There is a current programme of encouragement of small-scale industries and privatisation in an effort to increase the participation of the people.

The company tax rate is 25 per cent on the first $50,000 and 35 per cent thereafter.

However new businesses may be granted “Pioneer Industry” tax status

which allows for reduced tax rates. There are also several double taxation treaties in place.

Fiji The economy has been largely depen dent on the production and export of sugar. However, with the advent of tourism in the 1960 s and the govern ment’s commitment to encourage private investment and economic growth, the dominance of the sugar industry in the economy has decreased.

The manufacture and export of gar ments under the government’s taxation concessions for certain industries also produces substantial earnings for the economy while other major exports include unrefined gold, timber and fish.

Manufacturing, which is export oriented, has been encouraged by the government with various taxation con cessions.

All new foreign investment proposals require the approval of the Fiji Trade and Investment Board.

Customs duties are levied on goods entering Fiji.

Investment incentives primarily take the form of tax concessions reductions in company income tax, accelerated deductions, import duty concessions, tax holidays etc.

A number of trade concessions are available to assist the development of exports from Fiji. □ Compiled by Pacific branches of Peat Marwick, chartered accountants