The Government has shelved the income tax policy targeting “ministers of religion” with immediate effect and will consult churches on legislative reforms.

The Ministry of Customs and Revenue (M.C.R.) announced the decision through a public notice issued on Friday.

The notice was signed and issued by the Minister whose portfolio includes the M.C.R. and is also the Deputy Prime Minister Tuala Iosefo Ponifasio in the new administration.

The decision by the Ministry also allows them time to carry out discussions with the 38 church denominations in the country. 

The decision by the M.C.R. comes on the back of an order from the Cabinet over a week ago for the Ministry to begin a review of the controversial Income Tax Amendment Bill 2017 that requires church ministers to pay income tax. 

"The public is hereby advised that the income tax on Ministers of Religion which was imposed by the Income Tax Amendment Act 2017 and commenced enforcement on 1 of January 2018 is now being placed on hold until further notice," the notice reads. 

"During this time, the Ministry intends to facilitate consultation with various religious denominations regarding the legislative reforms that will be conducted. 

"At the same time, it will enable the Ministry to carry out and implement the required amendments to abrogate this obligation from Ministers of Religion as required under Income Tax Act 2021.

"This notice is published with immediate effect."

The decision by the M.C.R. on Friday follows concerns expressed by the leadership of Samoa’s largest denomination, the Congregational Christian Church of Samoa (C.C.C.S.) at the delay by the Fa’atuatua i le Atua Samoa ua Tasi (F.A.S.T.) Government to repeal the tax law.

The repealing of the tax law that targeted members of the clergy in Samoa is part of the F.A.S.T. party’s manifesto. Out of the 38 denominations in the country, only the CCCS objected to the law.

The matter had been in and out of the courts which saw close to 50 church ministers  being charged and appeared in court in 2019. But the charges were dismissed by the District Court given the lack of evidence provided by the prosecution which failed to prove the identity of the defendants and those charged as ministers of religion.

In an interview with the Samoa Observer on Thursday, the General Secretary of the C.C.C.S. Reverend Vavatau Taufao called on the three-month-old Government to "walk the talk" and deliver what they had promised prior to the April poll.

Reverend Vavatau was of the view that the Government was back peddling by ordering a review instead of immediately repealing the law as they promised. 

"I am hoping that they don't review that thing [taxation law] because in their manifesto it's repealing, not review or [in other words], abolish," Reverend Vavatau said in an interview.

"Because personally and I really believe this, that this is the very issue that actually draw the majority to F.A.S.T., because in their manifesto, it says that when they come in, they will just abolish [the law]; just remove it.

"So when I hear that they are saying they will [review and] discuss the issue [again], I am a bit worried because that's how the devil comes into things. 

"Devil will always come in through discussion, so I am hoping that they don't discuss things, just remove it.

"This is the number one reason why I support F.A.S.T. and I guarantee you that there are so many thousands of C.C.C.S. members support F.A.S.T. because of this [proposal].

"So for me, I'm praying that they don't discuss and just remove it."