4 Jan 2018

Tax on tobacco products in New Caledonia increases

1:38 pm on 4 January 2018

The tax on tobacco products in New Caledonia has gone up by up to 40 percent.

The increase was approved by Congress last week and as of today a pack of cigarettes costs $US16 while a bag of loose tobacco now costs more than $US18.

The hike comes just three days after the tax on alcoholic beverages was increased by 20 percent in a government drive to improve public health, reduce crime and raise money.

The higher tobacco tax is expected to generate additional revenue of about $US16 million a year, which experts consider to fall well short of the cost incurred to society.

The public broadcaster said a tobacco price hike of 30 percent three years ago reduced consumption by about 5 percent.