The Fiji Labour Party (FLP) has made a strong appeal for the government to expand the list of food items exempt from Value Added Tax (VAT) and to lower the VAT rate to 10%. This call was one of the key resolutions passed during the FLP’s national council meeting held in Nadi over the weekend.
In their resolution, party officials emphasized the necessity of including essential items such as eggs, meat, and various cooking ingredients under VAT exemptions. They argued that making these staple foods more accessible is crucial for the nutritional health of the population, particularly amidst a growing cost of living crisis that is placing significant strain on many families.
The FLP criticized the government’s recent decision to increase the VAT from 9% to 15%, highlighting how this move has disproportionately affected low-income citizens while government officials have opted for substantial salary increases. They are urging that essential food items are made affordable for all, particularly for those struggling financially.
These claims echo sentiments previously expressed by FLP leader Mahendra Chaudhry who, at an annual delegate conference, decried the 15% VAT rate as excessive. He noted that it undermines the purchasing power of everyday citizens and stifles economic activity.
The ongoing conversation surrounding VAT in Fiji represents a critical economic discussion, with calls for policymakers to strike a balance that addresses the government’s revenue needs while also being mindful of the financial realities for ordinary Fijians.
There is an underlying hope that through continued advocacy, adjustments to VAT policies could be made that focus on the welfare of citizens and contribute to easing the financial burdens faced by many. This represents an opportunity for policymakers to engage meaningfully with the concerns of their constituents and potentially implement reforms that promote both economic sustainability and social welfare.
Leave a comment