This is regardless of the notices and advisories made following the gazette of the Business License (Amendment) Act No. 30 of 2013 back in May. Under section 2 (1-3) carrying out a business activity without a license is an offence with fines of up to VT 500,000 and imprisonment of at least 1 year if found guilty.
To ensure all do comply, Rates & Taxes has this month embarked on inspecting all business premises within the Port Vila Municipality (PVM). The inspection begins with businesses in the Southern Ward and will continue until all areas are covered. Apart from ensuring that business houses and individuals operate with valid licenses, the team also provides awareness on what the law requires as well as assisting owners with identifying correct categories and fees.
It also became evident that some business owners, without knowing, have multiple activities but are operating under one license instead. It is important to note that under Section 19(2) of the Business License Act, any person carrying out more than one business activity must obtain a business license for each activity. The activities and corresponding fees are well spelled out under schedule 1 of the Act.
Apart from businesses that operate during normal working hours, kava nakamals and liquor outlets were also inspected from 5pm to 9 pm. This exercise is carried with the assistance of Port Vila Municipal Wardens given the requirements necessary for these activities also involve the approval of the PVM Council. From observations most kava nakamals nowadays compliment their kava sells with liquor. However, most owners tend to neglect the legal requirements necessary for them to observe before embarking on such business endeavors.
Rates & Taxes is also looking at liaising with amenity providers and associations with whom these businesses are members to ensure business license becomes part of their award criteria. These, if achieved, will not only help improve voluntary compliance by these business operators but will also hugely reduce cost of compliance which is seen as one the major constraints limiting the compliance efforts of the authorities concern, in this case the Department of Customs and Inland Revenue.
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.
