25 Nov 2005

Cook Islanders to profit from levy cut

3:08 pm on 25 November 2005

Consumers in the Cook Islands are getting a windfall from their government which has announced the removal of tariffs on some imported goods from July next year.

The director of the Consumer Affairs ministry, David Greig, says the excise will be removed from basics like imported flour and sugar.

He says currently there are some sectors who struggle to buy these staples.

"If the levy on these food items are removed, the national price will come down of these commodities, which is putting the people in a more affordable position to purchase all these goods for their day to day living."

The director of the Cook Islands Consumer Affairs ministry, David Greig.

The finance ministry says it is hoped the six-point-five percent drop in government income represented by the tariffs' removal

will be made up by an increase in value-added tax arising from more purchases of consumer goods.