Former Prime Minister Mahendra Chaudhry, the leader of the Fiji Labour Party, has raised concerns about the Coalition Government’s failure to address the escalating cost of living, a major issue affecting the populace. Speaking at the Party’s annual delegates conference in Nadi, Chaudhry criticized the government for imposing a 15 percent VAT on nearly all goods and services in its initial budget, which he argues has exacerbated the cost of living crisis and ignited inflation.
Chaudhry expressed dissatisfaction with the way Finance Minister Biman Prasad approached the VAT increase, describing it as an austerity measure intended to tackle Fiji’s substantial national debt of $10 billion. He contended that alternatives were overlooked and emphasized that such a tax disproportionately affects lower-income individuals, essentially transferring the tax burden from wealthier citizens to those least able to afford it.
He reminded the audience that the Labour Party has historically opposed VAT increases, citing their own efforts in 1999 to lower VAT on essential food items as a means of supporting the vulnerable. Chaudhry argued that the current 15 percent rate is excessive and unsustainable, advocating for a reduction back to 9 percent.
Chaudhry also criticized Prime Minister Rabuka for initially recognizing that the 15 percent VAT was too high, only to later backtrack under pressure from his Finance Minister and a key ally. He deemed this decision a breach of their electoral promises and a miscalculation, as it stifles consumer spending and discourages business growth.
In addition to voicing his concerns over VAT, Chaudhry pointed out perceived injustices in government actions, including tax breaks granted to Fiji Water and significant pay increases for Members of Parliament at a time when the minimum wage saw only a modest rise. He framed these actions as indicative of a government prioritizing its own interests over those of the public.
Chaudhry called for an independent investigation into the tax holidays for Fiji Water, questioning the connections between the company and certain government figures, and implying a conflict of interest. He criticized recent governmental appointments that appear to disregard public sentiment and legal ethics, reinforcing his argument that the Coalition Government lacks commitment to the rule of law.
Despite the serious nature of these allegations, there remains hope for positive change. By calling for transparency and accountability, Chaudhry’s statements could inspire public discourse on governance and encourage the government to re-evaluate its strategies for managing economic challenges. His efforts may also motivate constituents to hold their leaders accountable, potentially leading to reforms that prioritize the welfare of all citizens.
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