4 Jul 2013

Proposed Tahiti tax hikes cause concern

3:12 pm on 4 July 2013

There is dismay among service providers in French Polynesia over the proposed tax reforms.

The government outlined its plans this week and hopes to pass a budget at the end of next week, providing for a raft of hikes in an effort to boost the economy and tackle high levels of unemployment.

The union representing service providers says it wonders whether the increases are meant ot kill off businesses already struggling for years.

It says the sector is now to be burdened by a value added tax on services set at 40 percent, while there has been a freeze on some of the charges they can levy.