From July 1, 2006, most import levies will be lifted, although pork, fresh fruit and vegetables, pearls and soft drinks have been added to the original 'big four' list of exceptions - motor vehicles, liquor, tobacco and fuel - in order to allay fears that the move will have too big an impact on government revenues. However, import duties on the items added to the list will be cut by 50% on July 1, 2008. Further reductions will be subject to review.

Confirming last week that the government was going ahead with the measure, Finance Minister Dr Terepai Maoate said that following a consultation which ended in February, the views of the public would be taken into account on how best to proceed with the lifting of the levies.

“Four submissions were received from the public and their comments have been taken into consideration in drawing up exactly how the reform will be implemented,” he was quoted as announcing by Cook Island News.

Responding to public concern that the elimination of import duties will not be passed onto consumers in the form of lower prices, Dr Maoate stated that he has received assurances from business that prices will be cut, although he noted that there are already many products which are levy free.