Avarua District: Critics of a new tax bill in the Cook Islands’ say low wage earners will see little benefit from the law change.

The Income Tax Amendment Bill 2023, which was passed in Parliament on April 15, will mean people living in the Pa Enua (outer islands) for 182 days or more will not have to pay tax on the first $60,000 they earn, once the change comes into force.

The bill has been controversial since it was first announced as a policy less than a week before last year’s general election.

One political party called it a “last-minute” grab for votes, while another filled an election petition after the polls, accusing the government of bribing voters.

The petition was dismissed in court and judge ruled that all parties were “jockeying for votes”.

Prime Minister Mark Brown told MPs the amendment would result in $1.2 million returning to the pockets of workers.

“There is an uneven playing field when it comes to Rarotonga and the Pa Enua. This bill goes some way toward levelling that playing field,” Brown said.

“We think that things here on Rarotonga cost a lot of money, but when you go to the outer islands everything costs more than what it is here.”

Source -RNZ Pacific

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