10 Jan 2012

New Caledonia plans tax change for 2013

4:09 pm on 10 January 2012

New Caledonia's Congress has voted for a financial reform which will change the tax system from next year.

A broad coalition of parties backed the plan to do away with five levies and replace them with a tax on goods and services.

The rate is expected to be set at six percent, with a final figure to be confirmed by the legislature before the end of the year.

Among the levies to be dropped are some import and air freight fees.

The new tax will not apply to some sectors of the economy, such as health care, education, banking and real estate.

The Caledonia Together Party has been opposed to the change, saying it will trigger an inflationary shock with prices going up by about four percent.