Cook Islands raises tax on cigarettes, alcohol
Updated
Cook Islands' finance minister, Sir Terepai Maoate, has presented an $US80 million budget to parliament, increasing taxes on soft drinks, cigarettes and alcohol.
Our reporter in Cook Islands, Ulamila Wragg, says budget funding is down 9.5 per cent as a result of reduced income from donor agencies.
The government will raise new revenue in two areas - the tax on soft drinks that contain added sugar will go up 20 per cent and there will be a rise in the tax on cigarettes and alcohol, bringing the Cook Islands in line with other countries.
According to Sir Terepai, the tax increases are designed primarily to reduce the consumption of the products by young people in a bid to improve health and relieve stress on the health sector.
Sir Terepai says given the uncertainty in global economies, the government will continue to assess the country's economic situation.
He says while the government is aware of the financial pressures of price increases to basic commodities and fuel, it can't rule out further tax reform.
