If I understood correctly, this says Vanuatu is unhappy that it got gray-listed for dubious tax practices, whereas other tax havens weren't. This will affect the price of "imported food, such as rice, and fuel."
> The offshore financial sector kicks in only about 4 percent of the country’s annual output of roughly $800 million, but its existence requires an ultralow tax environment that deprives the government of some revenue.
Not sure I get this. I don't see a rational reason why such tax havens should exist in the first place. If efforts are made now to regulate them, surely that's a good thing. Hope they will be able to transform their economy anyway.
> The offshore financial sector kicks in only about 4 percent of the country’s annual output of roughly $800 million, but its existence requires an ultralow tax environment that deprives the government of some revenue.
Not sure I get this. I don't see a rational reason why such tax havens should exist in the first place. If efforts are made now to regulate them, surely that's a good thing. Hope they will be able to transform their economy anyway.