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Norfolk Island taxes are in accordance with Federal tax laws of Australia. Norfolk Island is a self governing territory of Australia under the administration of the Department of Transport and Regional Services, Canberra, Australia. Queen Elizabeth II is the chief of the state who is represented by the Governor General of Australia.
The absence of Norfolk Island direct taxes motivate the local inhabitants to generate more income locally. Income generated locally by Norfolk Island inhabitants are federal income tax exempted. The incidence of Norfolk Island indirect tax is prevalent. The Government of Norfolk Island charges commercial taxes (a form of indirect taxation), which in many instances are higher than existing in Australian mainland.
Norfolk Island is a shopper's paradise with over seventy low-tax shops. These low-tax shops in Norfolk Island deal in clothing, fashion accessories, jewelery and watches, knitwear, footwear, cosmetics and perfumes, home wares, electrical goods, china ware, sports shoes and equipments, photographic equipments, telescopes and binoculars, toys, tobacco products, specialty items.
The low tax shops attract shoppers from Australia, New Zealand, and tourists traveling to Australia.
Norfolk Island taxes aim to cover all local government expenditure making it a self-sufficient economy. Norfolk government receives significant financial assistance from Australian Federal Government.
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