28 Nov 2007

Niue Government aims to address problems in new consumption tax bill

4:53 pm on 28 November 2007

Niue's government says it is aware of the shortcomings of the new consumption tax bill and is trying to address them.

Niue is moving to introduce a tax on goods and services to be set at 12.5 percent.

In addition it would lower import duties and income taxes, as the country moves to comply with regional trade agreement requirements.

Opponents argue the new system would harm those on a low or no income, and small businesses.

The Finance Minister, Fisa Pihigia, says the government will do all it can to support these people.

"Certainly there is a way for the government to re-look at some of the areas to cater for the needs of those lower income [people] and also those who have no income at all. It could be to raise the salary of those below the threshold and also increase the benefit for some but not all. Whatever means the government can feel that is sustainable."

Niue Finance Minister, Fisa Pihigia.