Professor Prasad on fijivillage Straight Talk With Vijay Narayan

The government has done its part by reducing duties and VAT and now businesses must do theirs by ensuring a corresponding decrease in prices that reflects these reductions from 1st August this year.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad stressed this during fijivillage Straight Talk with Vijay Narayan, because he says passing the benefits to consumers remains a key concern.

Professor Prasad says it is unethical for businesses to pocket the savings from reduced duties and VAT for themselves and they have tried to use persuasion in the last two budgets.

He says they continue to find that some businesses are not passing on the benefits, and as a result, others follow as well.

The Deputy Prime Minister says they have set up a task force comprising the FCCC, FRCS, Consumer Council of Fiji and the Ministry of Finance to address this issue.

He says if they find businesses are deliberately not following the policy then there could be punitive measures as well.

Professor Prasad says they have done several things in the 2025/2026 National Budget to address cost of living such as reducing VAT from 15 to 12.5 percent, keeping the 22 items zero rated VAT, not reducing the income tax threshold and reduced duties on basic food items like fresh fish, salmon, canned fish, chicken portions, giblets, liver, etc.

Professor Prasad also revealed that outdated quarantine laws have been identified as a barrier to cheaper imports because many of these regulations, in place for decades, no longer reflect modern production and trade practices.

He says the Biosecurity Authority of Fiji has been directed to review these restrictions, especially for products like ghee from India, which could be imported more cheaply.

The Deputy Prime Minister further says that the government has conducted research showing that direct imports of certain items would reduce prices and offer consumers more choices.

He adds that the inflation, which was over 5 percent in previous years, has dropped to about 1.3 percent in 2024 and even lower—around 0.1 percent at the start of this year.

Prasad says the latest budget measures, including tax and duty reductions, increased price monitoring, and revised import policies, form a strong and effective package.

He adds that while external factors like rising oil prices and global conflicts could pose challenges, the government’s approach would help cushion any potential impact.

The Deputy Prime Minister is confident that, barring any major shocks such as a global economic slowdown, conflict in the Middle East, or an increase in oil prices, the government’s package will remain effective and the measures will help cushion the impact.

Deputy Prime Minister and Minister for Finance Professor Biman Prasad says that many local manufacturers enjoy significant protection and they shouldn’t make profit at the expense of the people, as they too have a responsibility to care for the community.

Professor Prasad stressed this during fijivillage Straight Talk with Vijay Narayan when asked about the concerns raised by the Fiji Commerce and Employers Federation over the partial removal of duty protection for manufacturers.

He says manufacturers need to produce enough at an acceptable cost.

He says protection is meant to be temporary, but in this country, some industries have enjoyed it for decades, leaving consumers to bear the cost.

Professor Prasad says under the previous government a sole company was given 10 years of tax protection and 32 percent duty protection on milk products while importers had to pay a 32 percent duty, the local manufacturer — who was protected and did not pay this duty — still sold milk at prices nearly equal to those of imported products with duty.

He says who is losing on that, certainly not the manufacturer or the business making all the money but not passing the benefit that the government is providing for a reasonable price.

The Deputy Prime Minister says it's the government's responsibility to look at the structure of protection, because they don't want people to keep paying more.

When asked about the monitoring system because people have been charged exorbitant prices and the need for FCCC to be more decisive, the Deputy Prime Minister says they will be more effective.

Professor Prasad further says they want this task force to ensure that the government is fair to the businesses, businesses are fair to the consumers and ensure that prices for consumers are reasonable.

The Deputy Prime Minister adds that it will be unethical and unscrupulous of businesses to maintain those prices when VAT and duty will be reduced and therefore the task force has a a lot of work to do.

Civil servants must deliver services to the people, as any delay in spending directly affects development and it shouldn’t happen as the government spends about $1.2 to $1.3 billion annually on civil service salaries and wages.

Civil servants will receive a 3 percent salary increase, effective from 1st August this year as announced in the 2025/2026 National Budget.

While speaking during fijivillage Straight Talk with Vijay Narayan, Deputy Prime Minister and Minister for Finance, Professor Biman Prasad highlighted that the government is happy to have delivered the pay rise, acknowledging that the last increase was in 2017 when they came into office.

He says in last year's budget they provided a salary increase in wages and salaries for government workers in the range of 7 to 20 percent.

Professor Prasad says this means within a year from August 1st, 2024 to August 1st, 2025, civil servants will receive a pay raise of between 10 to 23 percent.

He further says they want to ensure that civil servants are paid well.

The Deputy Prime Minister adds that the Public Service Commission with the support of the Australian government is looking at a number of issues within the civil service including performance management.

You can watch the full Straight Talk video on our website, fijivillage.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad says there is abuse within the social welfare system, and while it involves taxpayers’ money that must be carefully monitored, the government is also focused on protecting the vulnerable.

He commented on fijivillage Straight Talk with Vijay Narayan when asked how the increase in social welfare assistance is being monitored and how issues of abuse are being addressed.

Professor Prasad highlighted that the government increased social welfare allowances in the 2023–2024 National Budget with other support measures such as the Back-to-School initiative and price support for different sectors to help raise people’s income.

He stresses that abuse of the system exists and urges people not to misuse services meant for those genuinely in need to ensure that support reaches the right people, through a range of schemes under the social welfare category, including disability allowance, family income support and social pension.

Professor Prasad says that the 5 percent increase in monthly allowances for all social welfare recipients and government pensioners will make a significant difference.

He also confirmed that the Ministry of Social Protection is actively working to address loopholes that allow abuse of the system.

On the growing concern over HIV and drug-related problems, Professor Prasad says the HIV epidemic has become a serious issue, especially with the increasing number of cases linked to injectable drug use.

He stresses that Fiji had not seen comprehensive awareness campaigns for years and by the time the coalition government took office the situation had become a real threat.

The Deputy Prime Minister says the government has now allocated $10 million in the new budget to fight HIV/AIDS, a significant increase from the $100,000 to $150,000 that was previously allocated in budgets.

Professor Prasad says this reflects how seriously the government is taking the issue and highlights the need for urgent, coordinated action through education, testing and targeted interventions.

He further says the government is focusing on three key areas increasing funding for HIV/AIDS programs, establishing a Narcotics Bureau, and investing in border control measures for the Fiji Revenue and Customs Service to help curb drug trafficking.

Professor Prasad further says that government is “putting its money where its mouth is.”

Professor Prasad criticised the Opposition, saying many of those now raising concerns about the budget deficit had previously ignored these serious problems.

He adds that the coalition government is taking decisive action and sending a strong message through its focused investment and commitment to addressing these challenges.

Restoring partnerships between school management, communities, religious organizations and parents is crucial to rebuilding and strengthening an education system that was completely broken.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad highlighted this during fijivillage Straight Talk With Vijay Narayan and stressed that more than 16 years ago, the deterioration of schools and facilities began.

He says that, as a result, and in partnership with the Australian Government, an audit of more than 80 schools in the Suva-Nausori corridor was carried out.

Professor Prasad says infrastructure worsened due to a lack of independence in school management, inadequate education grants, and restrictions on fundraising.

Professor Prasad says this broken system discouraged parental involvement, with many parents now unaware of who teaches their children.

He says the government has responded by taking decisive action in the recent national budget to restore autonomy to school management.

In the 2025/2026 National Budget, an additional $500,000 has been allocated to the School Management Association to strengthen school leadership nationwide.

The Deputy Prime Minister says school grants previously came with spending guidelines, for instance, 20 percent designated for a specific purpose, regardless of a school's urgent needs like fixing washrooms or sanitation.

He says the new system allows full flexibility, allowing school management to prioritise their specific needs.

Professor Prasad says this move will be exciting among school management, parents and communities, as annual bazaars were once a key feature of every school before they were discontinued.

The Deputy Prime Minister adds that he is confident school managers and management associations across the country are pleased with this initiative.

The Deputy Prime Minister clarified that schools will continue to have to provide audited reports for transparency.

The increased funding for the Fiji Police Force will allow officers to target crime in red zone areas such as Suva, Nadi and Lautoka, especially regarding rising incidents of muggings and other petty crimes.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad says the government has allocated $240.3 million to the Force, aimed at strengthening security and enhancing police visibility across the country.

He says as part of this initiative, the number of officers will increase by 1,000, taking the total police strength to 6,550 for the first time, which is expected to result in more visibility and foot patrols.

Professor Prasad says that $40 million has been committed as part of the first phase of $19 million package, which will immediately bring in 800 to 900 additional officers, including the filling of current vacancies.

When asked about the measures in place to prevent drug dealers from using mobile money wallets for money laundering activities, the Deputy Prime Minister stated that all business transactions must be linked to a Tax Identification Number (TIN).

Professor Prasad says this allows the Fiji Revenue and Customs Service and relevant monitoring agencies to track and ensure that all transactions are legitimate.

He adds that requiring a TIN helps prevent the misuse of M-PAiSA mobile wallets for money laundering or the movement of drug money. This measure also ensures the government does not lose out on revenue and strengthens oversight of financial transactions.

You can watch the full Straight Talk video on our website fijivillage.