VAT reduction is sweet candy, questions Govt expenditure – Usamate

Opposition MP Jone Usamate has called the reduction in VAT a little bit of sweet candy and says it does not compensate for all the hurt that the Coalition Government has brought and they should not expect to be applauded for trying to dampen a fire that they lit in the first place.

While opposing the 2025-2025 National Budget, Usamate says it was this same government that exacerbated the cost of living and then challenged us by its decision to raise VAT to 15 percent over the last years.

He says the focus on short-term candy for self-gratification by this government is not new and started from the time they started in government where every single one of them became a Minister or Assistant Minister.

Usamate says they enticed the Group of 11 across, made another three ministerial and four assistant ministerial positions - all candy lollipops for everybody.

He says since the Coalition Government took over, debt has increased from $9.131 billion to $11.7 billion by 2026.

Usamate also says MSMEs are getting some assistance in this budget, however, there is a challenge with the VAT Monitoring System.

He says he knows there is a need to collect the revenue, but the impact it can have on MSMEs can be devastating for them.

Usamate says there are some incentives, such as for tour providers but to get that break, you need to invest around $100,000.

He says the small tour providers in Vanua Levu do not have $100,000 laying around, so that money will only go to the big providers and is not catering to the small ones.

Usamate further says the civil service bill has risen from $939 million in 2022 to $1.3 billion as the Government is employing more people and getting bigger.

He is calling on the Government to abolish 10 ministerial and some of the assistant ministerial positions, including that of Information and Justice and create a ministerial position for the Minister for Public Enterprises who focuses on making these State owned enterprises more effective.

Usamate says the cost for vehicle leasing is rising from $20 million in 2019-2020 to $40 million today and there have also been exorbitant overseas trips.

Usamate has also questioned why the government is using taxpayer funds to cover expenses and it should not be funding FNPF pension top-ups for a select few, trade unions and school management committees.

He says this money could instead be used to build roads, fix crossings, buy medicines, or increase social welfare. Usamate also criticised the new permanent allowance for Justices of Peace, saying it is a recurring cost that could be better spent on frontline health services. Usamate says it is senseless that the government doing this when they are borrowing to finance operational expenses. He adds the government collects $4 billion revenue, spends $5 billion, has a shortfall of $1 billion, which is equal to 25 percent of your revenue and 20 percent of your spending.

Usamate adds this will not provide future security, stability or transparency because they cannot deliver the growth to fund all that.