Niue Consumption Tax

The Niue Legislative Assembly passed the Niue Consumption Tax on 5 February 2009. The bill was introduced by Premier Toke Talagi. The bill imposes a 12.5 percent tax on goods and services, effective on 1 April 2009. Income tax has also been lowered, and import tax may be reset to zero except for "sin" items like tobacco, alcohol and soft drinks. Tax on secondary income was also lowered from 35 percent to 10 percent with the stated goal of fostering increased labour productivity.