The Deputy Prime Minister and Minister of Finance, Professor Biman Prasad, recently stated that there is currently no immediate solution to the escalating cost of living in Fiji. He has encouraged the public to manage their expectations while reiterating the government’s commitment to addressing rising prices.
Despite efforts such as tax relief and reductions in import duties, external factors, including inflation in major trading partners like Australia and New Zealand, continue to impact prices within Fiji. Prasad noted that even with initiatives like eliminating VAT on 21 essential food items and removing duties on certain goods, the burden of living costs has persisted.
The government’s strategy to combat these issues encompasses three main approaches. Firstly, it aims to directly support vulnerable populations who lack sufficient income. Secondly, policy modifications are being made to alleviate costs, which include cutting duties on meat products and maintaining zero VAT on basic food items. The government has also expanded the list of zero-rated products, now including prescribed medicines, totaling 22 essential items.
However, he acknowledged that these strategies may not fully alleviate the rising cost of living. Prasad emphasized the importance of raising incomes as a third approach, highlighting a recent significant pay increase for civil servants—an increase that has been unprecedented for teachers and civil servants in recent history.
This situation presents both challenges and opportunities for the government. While rising costs are concerning, the commitment to support vulnerable populations and the focus on improving income levels reflects a proactive stance. With sustained effort, there may be hope for improved living conditions in the long run.
In summary, the government recognizes the complexities surrounding the cost of living and is implementing measures to address both immediate and long-term solutions while encouraging the public to adapt to changing economic circumstances.
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