People in Rakiraki hoping for VAT reduction and better sugar price to ease cost of living

People in Rakiraki are hoping for the VAT rate to decrease from 15 percent as it will result in the price of groceries to go down and help the farmers.

This has been highlighted by Rakiraki Advisory Council Chair Jayanti Maharaj who says cane farmers are also hoping for better sugar prices as some of them say that the price of groceries have gone a bit high, but he has observed that the prices are coming down now.

He says fuel prices are coming down too but people are facing a challenge.

Meanwhile, Deputy Prime Minister and Minister for Finance Professor Biman Prasad had earlier said any government that comes to power must assess revenue sources carefully, warning that reducing VAT to 10 or 13 percent and removing zero percent VAT items may not necessarily lead to a reduction in prices.

He said reducing VAT does not necessarily mean price reductions for consumers, as prices can increase if the freight cost increases.

The 2025-2026 National Budget will be announced in Parliament on the 27th of this month.