Radio New Zealand - Te Reo Irirangi o Aotearoa

French Polynesia tax plan faces broad resistance

Posted at 22:29 on 11 November, 2009 UTC

Unions and employers in French Polynesia have threatened to take to the streets in protest at the government’s plan to introduce a new so-called internal solidarity tax of 1.5 percent.

The tax is being promoted by President Oscar Temaru as a way of kickstarting the economy and balancing the budget which the administration struggles to finalise this week.

Resistance to the proposed levy has also strained the ruling coalition, with the To Tatou Aia leader, Gaston Tong Sang saying in times of crisis fiscal pressure should ease.