Cook Island's Pearl Industry Opposes Export Tax Plans

by Mary Swire, Tax-News.com, Hong Kong

30 October 2001

The Cook Islands' pearl industry has opposed government plans to impose a tax on black pearl exports because they felt it would push the price up and place the Cook Islands at an unfair disadvantage against its closest rivals in Tahiti.

According to reports from the Cook Islands news service, the plans to tax black pearl exports was proposed as part of the government's strategy to obtain additional revenue to fund an international marketing and promotions programme for the industry of around $100,000.

Currently Tahiti levies a tax of US$2.00 per gramme of exported black pearls - a pearl weighs around two grammes on average and it helps finance the country's multi-million dollar marketing programme. Some officials from the Cook Islands goverment have argued that the country's black pearl industry, the third largest in the Cook Islands, could afford to contribute towards its marketing programme and concessions for stakeholders have already been discussed.

Producers put their argument forward at the first of a series of planned meetings between the industry and the government organised by the Development Investment Board/Small Business Enterprise Centre Task Force last week. First things first said the members and associates of the Pearl Guild who are insistent that the Task Force should fully understand issues surrounding production itself before tackling marketing and branding schemes.

Recommended