French Polynesia's assembly has raised taxes in a revised budget adopted on the eve of today's departure for Paris of the new president, Gaston Flosse.
A levy will affect higher incomes while alcohol and tobacco taxes have been increased by 10 percent.
The new taxes are expected to raise about 100 million US dollars to support two new funds set up in a bid to fight poverty and to promote investments.
Mr Flosse says the territory is on the verge of insolvency and last year relied on emergency transfers from France to survive.
He has blamed his predecessor, Oscar Temaru, for the problems, saying he had abandoned the territory.
Mr Temaru has rejected the claim, saying nobody wants to meet Mr Flosse any more.
