27 Oct 2004

Nauru Government looks to generate more income from higher import duty

7:02 pm on 27 October 2004

The new Nauru Government has announced increased duties on luxury goods such as alcohol and an across the board 10 percent increase on all other imports as it struggles to raise revenue.

Ludwig Scotty has been returned as President after the weekend's poll and his administration has already passed a Budget which Finance Minister, David Adeang, says will cause pain for Nauruans.

The country has been in the grip of a financial crisis for months and the new Budget aims to cut government costs through controls on public sector wages and the end of scholarships to Australian colleges.

Mr Adeang says the island also has to broaden its revenue sources and more duty on imports is one of the few options.

"because a lot of our food stuffs and other products are imported, so it diversifies and broadens sources of revenue for Government, because we are unable to receive revenue from the Phosphate Corporation which is running at a loss, and neither from our Trusts which are under receivership by the General Electric Capital Company, so we have to look at our domestic sources of revenue"