The Niue Consumption Tax (NCT) is a

value-added tax A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the end ...

consumption tax A consumption tax is a tax levied on consumption spending on goods and services. The tax base of such a tax is the money spent on Consumption (economics), consumption. Consumption taxes are usually indirect, such as a sales tax or a value-added ta ...

for goods and services consumed in

Niue Niue (, ; niu, Niuē) is an island country in the South Pacific Ocean, northeast of New Zealand. Niue's land area is about and its population, predominantly Polynesian, was about 1,600 in 2016. Niue is located in a triangle between Tong ...

. It is modeled on the New Zealand Goods and Services Tax and charged at a rate of 12.5%. The bill for the NCT was originally introduced to the

Niue Assembly The Niue Assembly ( niu, Niue Fono Ekepule) is the legislature of Niue. It consists of 20 members; 14 representatives of the villages and 6 elected on a common roll. Members are directly elected by universal suffrage, and serve a three-year t ...

by Premier

Toke Talagi Toke may refer to: * Toke (lake) in Norway * Toke (given name) * Toke Atoll in the Marshall Islands * Toke Station in Japan * Toke, as in 'toke it up', refers to the smoking of cannabis ''Cannabis'' () is a genus of flowering plants in the ...

in November 2007, but put on hold shortly afterwards after opposition from MPs. It was reintroduced a year later, and again delayed. It was finally passed on 5 February 2009, and came into force on 1 April 2009. The increased revenue from the NCT was partially offset by lowering

income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...

import tax A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being a source of revenue for the government, import duties can also be a form of regulation of foreign trade and polic ...

es, and tax on secondary income.

References

{{Reflist

External links

Text of the Niue Consumption Act
Law of Niue Value added taxes Economy of Niue

Consumption Tax A consumption tax is a tax levied on consumption spending on goods and services. The tax base of such a tax is the money spent on Consumption (economics), consumption. Consumption taxes are usually indirect, such as a sales tax or a value-added ta ...