23 Aug 2018

New Caledonia to control prices

3:07 pm on 23 August 2018

New Caledonia's Congress has agreed to impose temporary price controls from October to help bed in its tax reform.

The New Caledonia congress.

The New Caledonia congress. Photo: AFP

The decision is in response to concern that once a new consumption tax comes into force on October 1, there will be a sharp price hike.

Details have yet to be worked out.

The tax, known as TGC, will replace a raft of other taxes, such as import and air freight duties.

The TGC is graded and goes up to 22 percent for luxury goods.

The principle to levy a consumption tax was agreed to by employers, unions and Congress in 2014 and in 2016 it was approved as a new law.

It was to come into force at the beginning of last July but was put off for three months.