The leader of the Fiji Labour Party, Mahendra Chaudhry, has voiced strong opposition to the current 15 percent value-added tax (VAT), citing it as excessively burdensome for the population. During the FLP Annual Delegate Conference held in Nadi, Chaudhry argued for a reduction to at least 9 percent, a rate he believes is more sustainable.
Chaudhry pointed out that even Prime Minister Sitiveni Rabuka previously acknowledged the VAT as too high but later reversed his stance after facing pressure from Minister of Finance Biman Prasad and Fiscal Review Committee Chair Richard Naidu. According to Chaudhry, this decision reflects a disregard for the poor and a failure to uphold electoral promises, which he described as a betrayal.
He highlighted the negative impact of the VAT increase on consumers and businesses, noting that it reduces the purchasing power of citizens while providing minimal relief to low-income workers—only a slight increase of $15 to $20 per month in social welfare payouts. This situation has left citizens feeling overburdened and struggling, which, according to Chaudhry, has further alienated the ruling coalition from the people.
Chaudhry’s comments shed light on ongoing financial challenges faced by many Fijians, emphasizing the need for policies that prioritize the economic well-being of citizens. As discussions around VAT reform continue, there is hope that the government will consider more sustainable approaches that support both revenue generation and the financial relief of its constituents.
Summary: Chaudhry argues that the 15% VAT is excessive and should be lowered to 9%, stressing its negative impact on the poor. He criticizes the government for failing to fulfill election promises and calls for more effective financial relief for low-income workers.
Leave a comment