Former Prime Minister and leader of the Fiji Labour Party, Mahendra Chaudhry, has expressed strong criticism of the Coalition Government, claiming it has reversed its commitment to address the escalating cost of living, which he identifies as the most pressing concern for citizens. During the party’s annual delegates conference held in Nadi, Chaudhry highlighted that the Coalition’s first budget, introduced in July 2023, imposed a 15% value-added tax (VAT) on almost all goods and services. This move, Chaudhry argues, has significantly increased living expenses and contributed to rampant inflation.
Chaudhry criticized the Finance Minister, Biman Prasad, for what he deemed an arrogant approach to implementing this austerity measure, which he viewed as necessary to manage the country’s $10 billion national debt. The former Prime Minister stated that his party had warned Prasad as early as April 2023 about the detrimental effects of increasing VAT, which he claims disproportionately burdens the poor. He recounted that a Labour-led government in 1999 took steps to alleviate such pressures by reducing VAT on essential food items.
Chaudhry pointed out that even Prime Minister Rabuka had acknowledged that a 15% VAT was excessive but ultimately succumbed to the pressures imposed by Prasad and Richard Naidu, chair of the Fiscal Review Committee. This decision, he argued, constitutes a betrayal of electoral promises and illustrates short-sightedness, as it diminishes the purchasing power of citizens and negatively impacts business activity.
He emphasized that the 6% VAT hike was not accompanied by any substantial relief measures for low-income workers, resulting in further strain on families. Chaudhry took issue with the government’s simultaneous decision to grant a tax holiday to the multinational company Fiji Water and increase the salaries of Members of Parliament, describing these actions as a stark contradiction to the austerity measures directed at the public. He called for an independent investigation into the tax holiday granted to Fiji Water, suggesting a conflict of interest involving Richard Naidu and the Finance Minister.
Chaudhry further criticized the substantial pay raise for MPs, contrasting it with a meager increase in the national minimum wage, questioning the coalition’s commitment to fairness and public service. He condemned the Coalition for appearing self-serving and lacking ethical integrity, especially in light of recent public appointments that have met with widespread disapproval.
With ongoing public concern regarding governance, Chaudhry urged greater accountability from the Coalition Government as calls for reform continue. His speech reflects a critical view of the current economic policies and a demand for transparency in government dealings, shedding light on pressing issues affecting everyday Fijians.
In summary, Mahendra Chaudhry asserts that the Coalition Government’s decisions regarding VAT and public service pay raises signify a departure from its promises, resulting in unnecessary hardships for the populace. The call for ethical governance and accountability emphasizes the ongoing struggle for a fairer economic climate in Fiji, with the potential for positive change through public dialogue and reform.
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