1 Nov 2005

French Polynesian opposition questions fiscal reform plans

2:25 pm on 1 November 2005

The French Polynesian opposition says it is wrong to introduce new taxes as the government plans to reform its fiscal policy.

The French Polynesian assembly is currently discussing the budget for 2006 and the government wants to reform the tax system to boost the economy.

A media advisor of the opposition Tahoeraa Huiraatira Party, Yves Haupert, says the government wants to increase the social security fees and introduce new social taxes.

Mr Haupert says the party is against the proposed new taxes as there are no problems with the current system.

"We have the impression it is not completely clear, because the government doesn't say the truth about this. It said it is to finance the social security, but in reality, because these new taxes go first to the budget of the government and after only into the social security, the government can take the part it wants for its own budget before it gives the rest to the social security."