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