A coalition partner has broken with Vanuatu's government to announce that it will not support a proposed income tax.
Vanuatu income tax consultations Photo: Heather Maraki
The president of the Leaders Party of Vanuatu, infrastructure minister Jotham Napat, said he would be writing to the Prime Minister to say his MPs would not support the controversial proposal.
The Daily Post reported that at a meeting in North Efate, Mr Napat said he had been told by many people not to support the income tax, adding that other parties were scared to state their position on it.
Mr Napat said he hoped the Prime Minister, Charlot Salwai, would accept his position - and unprecedented break from government policy - as his party held a lot of support.
The government, which formed after elections almost a year ago, has pushed the income tax proposal as a way to increase government revenue and increase transparency.
But opponents, particularly the business community, say it would be detrimental to Vanuatu's economy and cost a lot for little gain.