Dr. Janesh Sami from the University of the South Pacific has emphasized the necessity for the Fijian government to adopt an evidence-based approach to effectively review and address the worsening cost of living crisis. At the recent 2025 Pacific Update, Dr. Sami stressed the urgency of conducting a thorough evaluation of the factors contributing to living expenses in Fiji, highlighting that merely reducing VAT or welfare support will not adequately solve the problem.
“The price consumers pay for goods is shaped by both domestic and external elements beyond just value-added tax,” Dr. Sami noted. He insists that for any substantive changes to occur, the government needs to delve deeply into the intricacies affecting pricing structures. This call for a comprehensive review resonates with previous discussions raised by Finance Minister Professor Biman Prasad, who has pointed out that inflation and external market conditions significantly impact the cost of living in Fiji.
In addressing the public’s frustrations over rising expenses, Minister Prasad has highlighted that the increase in living costs has been driven largely by external factors such as increased freight and inflation rates in key trading partners, rather than solely government taxation policies. He mentioned that the government has been implementing strategies like providing zero VAT on 22 essential items to help ease the financial burden on households and that a three-pronged approach has been established to tackle living costs. This includes protecting vulnerable populations, making policy adjustments to alleviate costs, and enhancing income levels through recent wage increases for civil servants.
Despite ongoing challenges, including criticisms from opposition leaders about insufficient government support for small and medium enterprises amidst this backdrop, there remains a hopeful sentiment. Initiatives aimed at increasing government transparency and fostering economic resilience point towards a future where living standards can improve. By incorporating insights from experts like Dr. Sami and responding to public concerns, there is potential for a balanced and effective strategy to mitigate the cost of living in Fiji, which will ultimately benefit the populace as more comprehensive solutions are sought.
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