13 Nov 2008

Niue premier hopes people will embrace tax changes

8:28 pm on 13 November 2008

The premier of Niue says a tax package that includes a goods and services charge will go before parliament again in early December.

The passage of the Niue Consumption Tax bill was deferred following strong opposition from MPs at its last reading a year ago.

Toke Talagi says the 12.5 percent levy will apply to all goods but the details of how it'll be applied to services are yet to be finalised.

He says he hopes people will embrace the changes, which extend to removing the duty from imported goods and reducing income tax.

"Well, the fact they'll be getting a 12.5 percent increase in their incomes, a minimum of 12.5 percent increase in their incomes, will in fact help them and that's part of the reasons why we're introducing these two things simultaneously. If the net cost for most of the general items we import will be two and a half percent, then I believe people will be better off with the tax reforms we're introducing"

Toke Talagi says the tax reforms will bring Niue into line with what other countries have done.

He says if passed, they'll be introduced in April next year.