14 Nov 2006

Calls for Niue to remove most taxes to attract investment

5:56 am on 14 November 2006

It's being suggested that Niue should remove most taxes to attract investment and people to the island.

The Niue government is preparing a new tax regime built around a consumption tax, but maverick MP Terry Coe says it should be copying tax free Norfolk Island.

Norfolk has been largely financially independent for years and this has been credited to its low tax status.

Mr Coe a former finance minister, says Niue could do the same.

He says in the first year they would need New Zealand to cover the income shortfall of around two million New Zealand dollars.

"And after that we would ask them to reduce that tax given to us and over the three to five years this would come down to one million New Zealand dollars would subsidize. And we would be able to run the island quite comfortably on that amount of money."