The Premier of Niue says the island's new consumption tax will boost Government revenues.
The Niue Consumption Tax, which imposes a 12.5 percent tax on goods and services, comes into effect on the first of April.
At the same time amended income tax legislation will also come into force.
The measures were passed late last week, after being delayed for nearly two years by widespread opposition within the Assembly.
The Premier Toke Talagi says he had been unhappy the original legislation would hurt people on low incomes and he says it's been adapted to ensure everyone is better off by at least 12.5 percent.
He says it will be good for the island.
"Because we will be able to afford the things that we have always wanted to do for the people on this island. And that is really the key to this whole thing. It is expanding the tax base from 1500 to include all visitors to the island which will then expand the tax base to the 3000 -4000 tourists last year and building up to the ten thousand that we are anticipating and aiming at."
