VAT reduction was not an easy decision to make, but it was made for the people – PM Rabuka

The reduction of VAT from 15 to 12.5 percent that was revealed in the 2025/2026 National budget announcement today was a difficult decision that the coalition government had to make but it was done for the people to reduce the cost of living.

This was highlighted by Prime Minister Sitiveni Rabuka following the National Budget announcement today which he describes as an expansionary budget.

Rabuka says the reduction of VAT means a loss of revenue, as the 1 percent is $100 million, so they have to look at that very seriously.

He adds that the final analysis that they made was that they could afford it, and it would be a great benefit for the people.

When asked about the National Budget outlining significant investments in infrastructure and innovation, and how he foresees these investments driving economic growth for the short term and long term, Rabuka says there will be more investments and employment.

Rabuka says this budget will have a great impact on people's lives as well as the condition of national infrastructure, improving mobility, connectivity, and the social lives of people.