Former Prime Minister and leader of the Fiji Labour Party, Mahendra Chaudhry, has expressed his concerns regarding the Coalition Government’s recent decisions, claiming they have forsaken their commitment to address the rising cost of living, which he describes as the primary source of hardship for residents. During his address at the party’s annual delegate conference held in Nadi, Chaudhry pointed to the government’s imposition of a 15 percent value-added tax (VAT) on nearly all goods and services in their July 2023 budget, which he argues has exacerbated inflation and heightened living costs.
Chaudhry criticized Finance Minister Biman Prasad for what he termed an arrogant approach to tax policy, stating that the government’s austerity measures are primarily aimed at addressing a national debt of $10 billion, without considering the burden on low-income families. He reiterated his party’s longstanding opposition to VAT, labeling it a regressive tax that disproportionately affects poorer individuals while easing the tax load for wealthier citizens. He urged for a reduction in VAT from the current 15 percent back to a more manageable 9 percent.
Chaudhry also pointed out contradictions in government policy, noting that while citizens were advised to endure austerity, notable tax breaks were granted to Fiji Water—a successful foreign corporation—concurrently with a pay increase for Members of Parliament. He expressed concern over the implications this has for local workers and businesses, particularly in light of a minimal increase in the national minimum wage.
Furthermore, Chaudhry raised alarms over potential conflicts of interest, specifically regarding the role of Richard Naidu— a senior partner at a law firm associated with Fiji Water’s tax negotiations—as the chair of the Fiscal Review Committee. He called for an independent investigation into this situation to ensure accountability.
Chaudhry concluded by highlighting the perceived self-serving nature of Parliament members and a troubling trend where public sentiment appears to be disregarded in government decisions, exemplified by various controversial appointments in key positions. He emphasized that such actions foster a lack of trust in the government and undermine the principles of ethics and integrity.
In summary, Mahendra Chaudhry’s statements reflect his deep concerns regarding the government’s fiscal policies and their implications for the populace and economy. His call for a reduction in VAT and an investigation into potential conflicts of interest underscores the need for transparency and accountability in governance.
Despite the challenges highlighted, there is hope for positive change if the government chooses to engage with public sentiment and reform taxation policies to better support those most affected by economic hardships. The opposition’s willingness to voice concerns may foster dialogue and encourage more equitable fiscal measures in the future.
Leave a comment