5 Aug 2011

Cook Islands opposition says withholding tax inept

9:36 am on 5 August 2011

The Cook Islands opposition claims most Cook Islanders are opposed to the government's re-introduction of a withholding tax last month.

The deputy opposition leader Wilkie Rasmussen says the legislation is an embarrassment for government because members of the public, including prominent business people, have shown it to be inept.

The withholding tax is being introduced to generate additional revenue to offset debts not allowed for by the previous government.

It means the interest earned on money in Cook Islands bank accounts will be taxed at 15 percent.