Mahendra Chaudhry, the former Prime Minister of Fiji and leader of the Fiji Labour Party, has criticized the Coalition Government for what he describes as a reversal on its commitment to combat the rising cost of living, a critical issue for many citizens. Speaking during the party’s annual delegates conference in Nadi, Chaudhry pointed out that the Coalition’s first budget in July 2023 introduced a 15% Value Added Tax (VAT) on nearly all goods and services, resulting in a significant increase in living costs and escalating inflation.
Chaudhry accused the Finance Minister, Biman Prasad, of exhibiting arrogance in implementing the tax hike, positioning it as an austerity measure necessary to manage the country’s $10 billion national debt. He stated that the Labour Party had forewarned the Minister about the adverse effects of such an increase, noting that VAT is inherently regressive and burdens the poor.
The Labour Party leader advocated for a reduction of VAT back to 9%, arguing that the current rate is unsustainable and unfairly punishes the most vulnerable members of society. He highlighted that even Prime Minister Rabuka had previously acknowledged that the 15% rate was excessive, but succumbed to the pressures exerted by the Finance Minister and an influential ally, Richard Naidu.
Chaudhry lamented that the VAT increase was not accompanied by substantial relief for low-income earners, leaving many struggling to cope. He also criticized the government’s decision to grant tax holidays to foreign entities like Fiji Water and raise parliamentary salaries, contrasting this with the minimal increase in the national minimum wage.
The former Prime Minister called for an independent investigation into the dealings between Fiji Water and the government, particularly concerning potential conflicts of interest involving Naidu, who is both a political associate of Prasad and a senior partner in a law firm representing Fiji Water.
Chaudhry expressed concerns over the integrity and ethical standards of current government officials, citing various appointments and actions perceived as dismissive of public opinion and the rule of law. He urged leaders to regain trust and prioritize the needs of ordinary citizens.
In a hopeful perspective, there remains an opportunity for the government to engage constructively with the community and stakeholders to re-evaluate its policies. Addressing the concerns raised could pave the way for restoring public confidence and ensuring more equitable economic growth that prioritizes the welfare of all Fijians.
By fostering dialogue and making adjustments to fiscal policies, the government can demonstrate its commitment to the citizens it serves, potentially leading to a more stable and prosperous future for the nation.
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