Customs & Tax Administration

Salvador Jacob, Assistant Secretary

Tax evasion and avoidance erodes the foundations of the social contract, undermines the integrity of tax systems and creates inequality amongst taxpayers. Effective tax administration is thus critical for securing the collection of tax revenues and even more importantly for safeguarding the fundamental values of the political, legal and financial system of a modern state.

The Sustainable Development Goals call for a global partnership “to strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection” (Target 17.1). Delivering a more modern and effective tax system and administration is essential for domestic resource mobilization and sustainable development and is a key to FSM’s tax efforts.

Strategic Goal:

Strengthen Tax Collections and Management


  • Pursue tax collection of at least 28 million dollars and enforce3 tax collection of penalties, delinquent taxes, and other fees pursuant to Customs and Tax Laws, Regulations, Policies and procedures.
  • enforce Customs Act Provisions for Customs clearance of vessels and aircrafts arriving at FSM ports and cargo inspection at Sea and Air freight station
  • Pursue the audit of taxpayer’s books to ensure compliance with audit and tax laws and regulations.
  • Improve issuance of notices of demand for payment of taxes

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