Solomon Islands: Removal of primary industry tax exemptions likely intended to address corruption and increase revenue

Around 17 June, Finance and Treasury Minister Gordon Darcy Lilo terminated all Memoranda of Understanding granting tax exemptions in the mining, forestry, and fisheries sectors. Darcy stated that the exemptions must only be approved under existing legislation through the Revenue and Customs Exemptions Committee. According to the Ministry, the decision aims to strengthen fiscal management, safeguard public revenue, and ensure a level playing field for investors. Separately, around 18 June, Lughu Mining Council Secretary John James Tingi'ia stated that West Renell landowners had submitted a claim application to former Minister of Mines, Hon. Bradley Tovosia, during his tenure, seeking AUD$388,668 in unpaid royalty shares linked to 33 bauxite shipments. The claim is part of a broader AUD$11 million claim against Asia Pacific Investment Development (APID) and its contractor, Bintang Mining Solomon Islands (BMSI), from bauxite mining since 2011. Tingi'ia stated that the matter is being decided in court. Bauxite mining on Rennell Island has remained suspended since October 2020 after the Government cancelled APID's mining lease.

Assessment: The Government's revocation of tax exemption memoranda and centralisation of approvals through the Revenue and Customs Exemptions Committee reflects PM Wale's efforts to reset resource sector arrangements, including increasing state revenues amid economic pressures, and addressing corruption. Unlike other resource claims in different parts of the Solomon Islands, the West Rennell royalty claim is unlikely to trigger significant unrest, as claimants are pursuing compensation through established legal channels.

Sources: Indy Maealasia, “Lilo Terminates All Resource Sector Tax Exemption MoUs with Immediate Effect,” In-depth Solomons,17 June 2026; “$61.48m CLAIM,” Solomon Star, 18 June 2026.