The French Polynesian government is set to abandon its planned internal solidarity tax of 1.5 percent, after vocal opposition by unions and employers.
The tax was a key component of the 2010 budget which the Oscar Temaru-led administration struggles to finalise.
Walter Zweifel reports.
"A senior politician in the ruling coalition, Jean-Christophe Bouissou, has told a news conference that the tax will be dropped when the assembly's finance commission deals with the budget. This comes as the To Tatou Aia Party of Gaston Tong Sang has abandoned any active role in the commission's work, prompting calls for him to declare whether it still wants to be part of the ruling majority. All the while, there is continued talk of a no confidence motion being drawn up by Mr Tong Sang and the Tahoeraa Huiraatira Party. Mr Bouissou has ruled out any cooperation with them, while Mr Temaru has told a local paper that their leaders face problems with the judiciary as probes are ongoing."