Taxation in New Caledonia

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New Caledonia’s employers federation has warned of imminent action in protest at the government’s tax reform. A consumption tax will come into force in two weeks, accompanied by price controls.

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.

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.

New Caledonia’s Congress has approved tax hikes on alcohol and tobacco as part of the government’s comprehensive plan to counter excessive drinking.

New Caledonia’s Congress is due to debate a comprehensive tax reform. The key aspect is a planned three-tiered consumption tax which would replace a raft of levies, including the import tax.

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