WELLINGTON, New Zealand (Radio New Zealand International, May 31) – Samoa’s new Finance Minister has tabled in Parliament his first annual budget for the 2006/2007 fiscal year with an increase of 2.5 percent to the Valued Added Goods Tax.
This will bring the total tax to 15 percent.
The Finance Minister Niko Lee Hang says the new increase will be effective on October 1st.
In addition the Minister in his new financial year budget has also tabled a 10 percent increase on excise taxes for soft drinks, alcoholic beverages and tobacco.
The new increase will take effect on July 1st.
The Minister says the government has not taken the decision lightly before making the new rates.
But he emphasized that value added tax does not apply to a range of basic items such as electricity, water rates, taxi and bus fares, medical and education fees, raw fish, fruits and vegetables.
He says the increase on excise taxes, is because the government is so...