11 Sep 2018

New Caledonia sets new consumption tax

9:02 pm on 11 September 2018

The government in New Caledonia has approved adjustments to a new consumption tax which comes into effect next month.

Noumea port, New Caledonia.

Noumea port, New Caledonia. Photo: RNZ / Johnny Blades

It went ahead with its decision despite a protest by employers.

Employers closed petrol stations territory-wide for half a day to signal to the government their opposition to its proposed tax rates.

They presented another formula after talks with the unions, saying the government plan would cut their margins to an extent that their operations will be imperiled.

But the government wasn't swayed and insists its reform will lower prices, which are the highest in France.

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