Radio Australia reports that the budget funding is down 9.5 percent as a result of reduced income from donor agencies.
The government wants to raise new revenue in two areas — the tax on soft drinks that contain added sugar will go up 20 percent and there will be a rise in the tax on cigarettes and alcohol, bringing the Cook Islands in line with other countries.
According to Maoate, the tax increases are designed primarily to reduce the consumption of the products by young people in a bid to improve health and relieve stress on the health sector.
He said given the uncertainty in global economies, the government will continue to assess the country’s economic situation.
