Former Prime Minister Mahendra Chaudhry, who leads the Fiji Labour Party, has voiced strong criticism of the Coalition Government’s recent actions concerning the rising cost of living, which he identifies as a significant issue facing the population. Addressing the Party’s annual delegates conference in Nadi, Chaudhry highlighted the government’s decision to implement a 15 percent VAT on most goods and services in its first Budget in July 2023, resulting in increased living costs and inflation.
Chaudhry accused Finance Minister Biman Prasad of employing an arrogant approach to the VAT hike, framing it as a necessary austerity measure to manage the nation’s $10 billion debt without considering its detrimental effects on the vulnerable population. He previously warned about the adverse implications of such a tax increase, emphasizing that it disproportionately impacts lower-income groups while favoring those better positioned to handle tax burdens.
The former Prime Minister drew attention to the Labour Party’s historical stance against VAT, labeling it a regressive tax and recalling that a prior Labour government had decreased VAT on essential food items to assist the needy. Chaudhry further pointed out that despite Prime Minister Rabuka acknowledging the excessive nature of the 15 percent VAT, he ultimately succumbed to pressure from Prasad and Richard Naidu, the chair of the Fiscal Review Committee.
Chaudhry’s discontent extends to perceived inconsistencies within the government’s fiscal policies, particularly the granting of a tax holiday to Fiji Water while simultaneously increasing corporate taxes for local businesses. He posited that such actions are disrespectful to local workers and businesses, particularly as the national minimum wage saw only a modest increase.
To strengthen his argument, Chaudhry criticized the significant salary increases granted to Members of Parliament, contrasting this with the meager wage rise for low-income workers. He suggested that these actions convey a message of self-interest among Coalition ministers.
He also raised concerns regarding a lack of transparency and accountability within the government, questioning the motivations behind recent judicial appointments that bypassed public opinion. This situation has sparked protests and legislative challenges, leaving citizens doubtful of the integrity of the institutions meant to uphold the law.
In conclusion, Chaudhry’s remarks reflect a growing discontent regarding the current government’s fiscal decisions and their perceived disregard for ethical governance. Despite the challenges, there remains hope for dialogue and reform as citizens and opposition parties advocate for fairer policies that prioritize the welfare of all Fijians.
This situation underscores the importance of transparency and fiscal responsibility in government actions, a reminder that accountability should be at the forefront of policy decisions to ensure trust in leadership.
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