Fiji Labour Party Leader Mahendra Chaudhry has expressed serious concerns at the warning from Finance Minister, Professor Biman Prasad that tax increases are “inevitable”.
Chaudhry says this is quite disturbing as any increase in taxes, more so an increase in VAT and Customs Duty, will hit hard the lower to middle income families as it will push up prices.
He says as things stand, the poor and low income families simply do not have the capacity to sustain any further increases in the cost of living.
Chaudhry’s warning on tax increases come as Professor Prasad announced the setting up of a 14-member Fiscal Review Committee and said it is inevitable that there will be increases in taxation.
The committee is tasked to examine the overall setting of government’s fiscal policy and make recommendations how to rebalance government revenue and expenditure, grow the economy and ensure the government is fiscally sustainable over the next decade.
Chaudhry is also critical of the composition of the committee.
The FLP Leader says it is regrettable that the membership of the Fiscal Review Committee is mostly drawn from the well off in the community.
He says he does not see the workers or the farming community - the very people who are most vulnerable to Fiji’s economic and social woes - being fairly represented. Chaudhry says Professor Prasad says taxes have to be increased so we can reduce our debt levels and “find billions of dollars to invest in health, water, road, climate adaptation, energy and housing”.
The FLP Leader says this could mean substantial increases in both tax and non-tax revenue.
We have sent questions to Professor Prasad and committee Chairman, Richard Naidu.
