Former Deputy Prime Minister and leader of the National Federation Party, Prof Biman Prasad, has called upon Opposition MP Jone Usamate to be transparent and truthful with the Fijian public regarding taxation issues. In his recent statement, Prof Prasad emphasized the necessity of acknowledging the tax policies that existed when Usamate served as a minister in the Bainimarama government.
Highlighting a crucial period from 2011 to 2015, Prasad noted that during Usamate’s tenure, the Value Added Tax (VAT) was set at 15 percent, which led many Fijians to face tax rates as high as 25 percent. He further remarked that from January 2016 to March 2022, the VAT was significantly reduced to 9 percent for all goods and services, a change that did not exempt basic food items from taxation.
In addition to VAT adjustments, Prof Prasad pointed out that the government introduced a 10 percent Environment and Climate Adaptation Levy (ECAL) along with a 6 percent Service Turnover Tax (STT) during this timeframe. He stressed that these points represent the reality of the tax landscape during those years.
While emphasizing the importance of public debates about taxation in a democratic society, Prasad reiterated that discussions should be fact-based and honest. He expressed his willingness to engage in dialogue about tax policies and the real challenges faced by ordinary Fijians, stating, “Fijians deserve the truth.”
Prof Prasad’s call for transparency and factual discussions about taxation aims to enlighten the public and foster a constructive dialogue on economic policies affecting the citizens of Fiji. This approach not only promotes authenticity in political discourse but also empowers the populace with the information needed to understand complex taxation matters.
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