Former Prime Minister Mahendra Chaudhry, who leads the Fiji Labour Party, has voiced significant concerns regarding the Coalition Government’s management of the economy, specifically regarding the rising cost of living. During his address at the party’s annual delegates conference in Nadi, Chaudhry reiterated his call for reducing the Value Added Tax (VAT) from the current rate of 15% back to 9%. He emphasizes that lowering VAT is essential for alleviating the financial strain that many Fijians are experiencing.
Chaudhry argued that the recent VAT hike has exacerbated inflation, lead to diminished purchasing power for consumers, and negatively affected small businesses. He noted that the Reserve Bank recorded inflation levels at a decade-high of 7.1%, attributing much of that increase to the VAT rise. Furthermore, he criticized Finance Minister Biman Prasad for failing to explore alternative revenue-generating measures, instead opting for an approach that disproportionately impacts lower-income individuals, creating further economic hardship.
Highlighting the disparity in government policies, Chaudhry pointed to tax breaks granted to Fiji Water—a foreign corporation—while local businesses face higher taxes. He questioned the rationale behind these decisions, which appear to prioritize corporate interests over the welfare of everyday citizens.
In addition to his call for VAT reform, Chaudhry suggested considering alternative taxation strategies that would place a more equitable burden and could yield significant revenue, such as reinstating the Service Turnover Tax and Stamp Duty, as well as instituting taxes on luxury imports. He also recommended reviewing corporate tax exemptions to bolster government funds.
Chaudhry’s comments reflect broader public discontent with the current government’s fiscal strategies, urging the need for greater transparency and accountability. Amidst these challenges, there remains hope that constructive dialogue and reforms can lead to a more fair economic landscape for all Fijians. By engaging with the community’s concerns, the government may not only rebuild trust but also foster a more inclusive and supportive economic environment.
The importance of these discussions lies in the potential for constructive policy adjustments that could not only provide immediate relief but also ensure sustainable economic growth that prioritizes the needs of all citizens.
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