Opposition Member of Parliament Virendra Lal has expressed strong discontent over the proposed reduction of Value Added Tax (VAT) by 2.5% in the 2025-2026 National Budget, characterizing it as a minimal gesture that does little to alleviate rising costs for ordinary Fijians. During a parliamentary debate, Lal remarked that this reduction offers only a scant relief of $2.50 on a $100 basket of goods, which he argues is insufficient for many families struggling with their daily expenses.
Lal recalled that when the VAT was set at 9%, such a basket would cost Fijians significantly less—at least $6 less. This reduction previously allowed families to afford essential transportation, further emphasizing the limited impact of the current proposed VAT change. He criticized the government’s decision to maintain the VAT at 15%, stating it has worsened living conditions for many, particularly those without a stable income.
The sentiment of disappointment regarding the greater economic strategy was echoed in previous debates by other opposition members. They have uniformly highlighted that the current budget lacks innovative measures to truly address the high cost of living, with criticisms pointing out that simply raising taxes while neglecting essential public services only amplifies the economic burden on the populace.
Independent MP Premila Kumar also decried the increase in VAT, emphasizing that it failed to meet revenue targets and further eroded consumers’ purchasing power, substantiating Lal’s concerns. Kumar’s comments reinforce the argument that the government’s reliance on heightened taxation fails to stimulate the economy in a productive manner.
In these discussions, rising inflation rates—recorded at 6.7% in June—have further complicated Fiji’s economic landscape, emphasizing the urgency for comprehensive policy reform and targeted relief measures.
While the prevailing tone in these debates has been critical, there remains a glimmer of hope as ongoing discussions suggest a willingness among some government officials to explore strategies that genuinely support vulnerable communities. The potential for collaborative policymaking that prioritizes the needs of ordinary Fijians could pave the way for a more sustainable economic environment in the future.
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