Opposition MP Jone Usamate has publicly criticized former Deputy Prime Minister and National Federation Party leader, Professor Biman Prasad, for allegedly misleading the public regarding tax changes and the impact on the cost of living in Fiji. In a recent statement, Usamate accused Prasad of defending government policies with what he described as “spreadsheet arguments,” while ordinary Fijians are enduring increased household expenses.
Usamate challenged Prasad’s claims that tax levels had previously reached approximately 25 percent, asserting that this figure included various levies—namely the Value Added Tax (VAT), the Environment and Climate Adaptation Levy (ECAL), and the Service Turnover Tax (STT)—primarily applicable to the tourism and hospitality sectors. He pointed out that contrasting these taxes with the current 15 percent VAT on everyday goods and services is misleading and does not accurately represent the tax burden on families.
The Opposition MP also rejected the government’s assertion that there were no zero-rated essential food items prior to the recent tax reforms. Usamate stated that before the 2022 elections, there were actually 21 basic food items, such as flour, rice, sugar, and cooking oil, that were zero-rated for VAT. Furthermore, he noted that essential medicines were accessible through the Government’s Free Medicine Scheme for qualifying low-income families.
Highlighting the government’s fiscal decisions, Usamate criticized the increase of VAT from 9 percent to 15 percent in the 2023 budget, which he claims has significantly contributed to the rising cost of living. Although he acknowledged a recent announcement to reduce VAT to 12.5 percent, he emphasized that this still indicates a net increase compared to the rates before 2023, which he believes fails to alleviate the financial strain on households struggling with escalated food and living costs.
In his concluding remarks, Usamate emphasized that the public is primarily concerned with the tangible effects of government policies on their daily expenses, rather than intricate debates about tax frameworks. This insight underscores the urgent need for policies that directly address the economic pressures affecting everyday citizens, fostering hope for solutions that can alleviate the financial burdens faced by Fiji’s families.
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