This budget will build a strong economy and society – Consumer Council of Fiji

This is a budget that will build a stronger economy and an equitable society.

This was stated by the Consumer Council of Fiji as they welcomed the significant measures announced in the 2023-2024 national budget that was aimed at bolstering social welfare assistance and alleviating the burden on consumers' everyday expenses, especially in times of global economic uncertainties.

Council Chief Executive Officer Seema Shandil stated that the new budget has allocated substantial resources to expand and enhance social welfare assistance programs across the nation.

Shandil says the 15 percent across the board increase in social welfare assistance and 25 percent increase in allowance for those over 70 years of age will increase the purchasing power of the needy population and will have a cushioning effect on the vulnerable and the lower and middle-income earners.

She says the budget introduces substantial funding for social welfare programs, ensures affordability of essentials and reaffirms the government's commitment to ensuring the well-being and prosperity of Fijian consumers.

Shandil adds the social assistance mentioned above has been further complemented with the continuation of VAT exemption on 22 essential items – this will enhance the standard of living and address the needs of the most vulnerable members of society.

She also mentioned that the exemption of VAT on prescribed medication is a resolute step toward ensuring that individuals have affordable access to essential healthcare resources. She says this is a key announcement in the national budget that would ensure consumers have adequate and appropriate medical care.

She adds this will actively promote public health and well-being, especially for those who depend on medication to manage chronic conditions or address acute medical needs.

Shandil says this policy announcement also demonstrates a deep understanding of the challenges faced by individuals requiring regular access to vital healthcare treatments.

The CEO says they also welcome the continuation of the public private partnership whereby Fijians with combined family income of less than $30,000 will be able to access health services in selected private.

Furthermore, Shandil says the back-to-school support of $45 million, continuation of free education for and secondary school students and the introduction of the Fijian scholarship scheme is another good news for consumers as it means they will not have to fork our money from their already constrained wallets and will be able to use this money for other necessities.

She says the provision of free education is a transformative measure that ensures every student has the opportunity to pursue their academic goals, regardless of their socioeconomic background.

Shandil says by removing financial barriers to education, the government is fostering a more inclusive society, where talent and potential can flourish unimpeded.

The Council also stated that while the VAT rate has increased to 15 percent, they note there has been significant reductions in fiscal duties from 32 percent to 15 percent on a range of food products (canned mackerel, corned mutton, corned beef, prawns and duck) as well as imported lamb/sheep.

They say this will ensure that consumers are able to enjoy a variety of meals apart from the locally grown fresh produce.

Shandil says the Council is emphasizing that these reductions in the excise duties must be passed down to the consumers, to ensure that consumers reap the benefits of it.

She adds traders are cautioned to recognize their responsibilities towards consumers and play a proactive role in easing the burden on them.

The CEO went on to say they will also be closely monitoring the market to ensure the benefits actually trickle down to consumers.

She says given the health and socioeconomic havoc which NCDs is dishing out, the Council also welcomes the imposition of higher excise duty on alcohol and tobacco products, as well as the carbonated sweetened beverages, ice cream, snacks, sweet biscuits, and confectionaries.

She also says the new elevated prices for the above mentioned products would encourage consumers to rethink consuming unhealthy foods, and opt for healthier foods and consumption habits.

Shandil says the fact that these were considered and announced in the budget reinforces that the voice of consumers has been reflected in the national budget.

2023-2024 Budget Coverage