Foreign Exchange Levy (Amendment) Act 2016
Act 4 of 2016
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FOREIGN EXCHANGE LEVY
(AMENDMENT) ACT 2016
Foreign Exchange Levy (Amendment) Act 2016 Arrangement of Sections
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Act 4 of 2016 Page 3
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FOREIGN EXCHANGE LEVY (AMENDMENT) ACT
2016
Arrangement of Sections
Section
1 Short title and interpretation .................................................................................. 5
2 Section 2 amended ................................................................................................. 5
3 Section 3(2) repealed ............................................................................................. 6
4 Section 4 amended ................................................................................................. 6
5 Section 7 amended ................................................................................................. 6
6 New section 10 inserted ......................................................................................... 6
Foreign Exchange Levy (Amendment) Act 2016 Section 1
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Act 4 of 2016 Page 5
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FOREIGN EXCHANGE LEVY (AMENDMENT) ACT
2016
Act 4 of 2016
AN ACT TO AMEND THE FOREIGN EXCHANGE LEVY ACT 2015
I assent,
TUPOU VI,
28th April 2016.
BE IT ENACTED by the King and Legislative Assembly of Tonga in the
Legislature of the Kingdom as follows:
1 Short title and interpretation
(1) This Act may be cited as the Foreign Exchange Levy (Amendment) Act 2016.
(2) In the Act, the Foreign Exchange Levy Act 2015 shall be referred to as the
Principal Act.
2 Section 2 amended
Section 2 of Principal Act is amended -
(a) by deleting the word “financial institution” and its definition and replacing it
with the following -
““financial institution” means a financial institution defined under the
Financial Institutions Act 2004, as amended, carrying on in the Kingdom
the business of banking, the purchase or sale of foreign currency
including arrangements or contracts for the future purchase or delivery
of foreign currencies or providing money transmission services, and for
the avoidance of any doubt includes foreign exchange dealers licensed
Section 3 Foreign Exchange Levy (Amendment) Act 2016
Page 6 Act 4 of 2016
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under the Foreign Exchange Control Act, and includes for the purposes
of this Act the National Reserve Bank of Tonga;”;
(b) in the definition of the word “purchase or sale of foreign currency” insert after
the word “foreign currency” the words “including arrangements or contracts for
the future purchase or delivery of foreign currencies”; and
(c) by deleting the word “spread” and its definition and replacing it with the
following -
““spread” means the difference in Pa’anga value between the midrate
and the applied selling rate or applied buying rate, as the case may be, in
every purchase or sale of foreign currency transaction.”.
3 Section 3(2) repealed
The Principal Act is amended by repealing section 3(2).
4 Section 4 amended
Section 4 of the Principal Act is deleted and replaced with the following new section -
“The levy shall be imposed and paid at a rate of one half of a seniti from the
spread on each one pa’anga of every purchase and sale of foreign currency
transaction.
Provided that the levy shall only be imposed if the spread on each one pa’anga
in a purchase or sale of foreign currency transaction is more than one half of a
seniti.”.
5 Section 7 amended
Section 7 of the Principal Act is amended by deleting the number “5,000” and
replacing it with “50,000”.
6 New section 10 inserted
The Principal Act is amended by inserting the following new section 10 in the
appropriate place -
“10 Repeal
This Act shall be repealed on 30 June 2020.”.
Passed by the Legislative Assembly this 17th day of February 2016.