The operation, code named Operation Klerem Rod 2014, was supported by Port Vila Municipal (PVM) Wardens and the Department of Customs and Inland Revenue (DCIR).
The purpose of the operation was to address non compliance by vehicle owners and drivers in relation to those legislations governing motor vehicles. The main aim of this exercise was to ensure all vehicle owners and drivers had the following valid licenses/permits/documents in their possession;
- Driving license
- Driver’s Public vehicle Permit
- Public vehicle permit (bus, taxi, public transport)
- Vehicle Registration book
- 2014 Road tax sticker
- Business license (if the vehicle is used for business purposes)
- And other related requirements as enforced by Police and PVM council
In revenue terms, a total of VT 1,241,615 was collected as result of the operation. Out of the 108 vehicles detained, 93 were released during the day after payments of spot fines/ taxes/license/permit fees were made. The remaining vehicles will soon be released later during the week or once all outstanding related taxes/licenses are settled with authorities concerned.
During the operation it was evident that most public transport operators are not well aware of the related tax/license requirements, mainly the requirement for all public transport operators to have a business license. This follows the recent business license Act amendment which came into effect in May, 2014. Under the amendment, businesses with annual turnover of less that 4 million are to pay a minimum fee of VT 10,000. However since the commencement date of the amendment was delayed until May, the fee was prorated at VT 6,650. It should be noted that any fees not paid after the grace period which ended in July will be increased at the rate of 10% every month.
It was also apparent from the operation that some of the transport operators had valid business licenses that were however obtained from inappropriate authorities. It must be made clear that DCIR is the authority responsible for all business licenses for business establishments within the municipal areas. DCIR will be meeting with SHEFA secretariat on the matter later this year to ensure the same will not be entertained in future.
Overall the operation was hailed a success by all enforcement agencies involved; however planning is underway for a couple more before the year ends. This is to ensure all tax/license dues for this year, 2014 are collected and cleared of the records before 2015 commences. Rather than risk being caught or penalized, DCIR would like to advise all motor vehicle owners and drivers to voluntarily come forward and sort out any of the above taxes and fees if they have not yet done so.
For more information please contact the Rates and Taxes Office by phone: 00678 24969 (Port Vila), 00678 36386 (Santo), 00678 66784 (Lenakel) or visit us at our Office in Carnot Street, Port Vila or at Millennium Building in Luganville or Commercial Center Building in Lenakel.
