I’m the final arbiter and I will not say whether VAT will go up at this stage - PM

Lowering the personal income tax threshold will make more people struggle and most of the people are now comfortable when it is at $30,000.

While speaking during the fijivillage Straight Talk with Vijay Narayan, Prime Minister Sitiveni Rabuka says they will listen to the government agencies such as the Fiji Bureau of Statistics that conducts the Household Income and Expenditure Survey and determine if $30,000 is a reasonable level of income the government should rule off at.

When questioned on the Fiscal Review Committee’s recommendation to increase VAT but not greater than 15 percent, Rabuka says he will be the final arbiter so he will not say whether it will go up or not.

He says he will base his decision on the social platform and the people they will be taxing.

When questioned on increasing VAT to 15 percent and the impact it could have on people, Rabuka says it is both an economic and social matter for the leader of the government to decide on.

Rabuka says he has not been given the report and resolutions of the National Economic Summit which he, the cabinet and the Budget Sub-Committee will look at and make the decision on increasing it to 15 percents or to keep it static. When questioned on the increase in prices of non-price control items and the government’s and Fijian Competition and Consumer Commission’s response to it, Rabuka says the FCCC is doing its job and are looking at what the consumers are saying.

watch the full Straight Talk video here: