Chair of the Macroeconomic Committee, Ariff Ali has signaled higher prices of goods and services if we have an increase in the national minimum wage without increased productivity.
There are indications coming through that increased freight costs during and after COVID-19 were passed down to the consumers, and people have also felt the effects through the increase in the prices of goods and services after the VAT increase to 15 percent and company tax going up from 20 percent to 25 percent.
In the latest assessment, Ali says the risk of heightened geopolitical tensions, continued loss of labour due to migration, delayed approvals, rising cost of doing business and the constant threat of climate change and natural disasters, combined with the proposed increase in the minimum wage rate without increased productivity will raise input costs for businesses resulting in higher prices of goods and services that are likely to be passed down to consumers, affecting inflation and economic activity.
The Macroeconomic Committee is made up of heads and senior representatives from the Ministry of Finance; Fiji Bureau of Statistics; Ministry of Trade, Co-operatives, Small and Medium Enterprises, Ministry of Tourism and Civil Aviation, Office of the Prime Minister; Investment Fiji; Fiji Revenue and Customs Service and the Reserve Bank of Fiji.
Deputy Prime Minister and Minister for Finance, Professor Biman Prasad will deliver the 2024/2025 National Budget at 10am Friday.
