As the cost of living remains a pressing issue for many people with inflation around 4.5 percent, Acting Prime Minister and Minister for Finance, Professor Biman Prasad stresses that they can’t continue to protect industries with high import duties, and place restrictions on import sources, and yet allow these companies to control production and charge people unreasonable prices.
Professor Prasad highlighted this during the Fiji Commerce and Employers Federation’s State of the Economy Breakfast Talanoa, and says that businesses must ensure fair pricing, improve operational efficiencies and adopt a long-term sustainable approach to profitability.
He says they are also restricting imports, for example providing 42 percent duty protection to all the Fiji based chicken producers.
He further says the government can’t continue to keep that protection while the people are forced to pay significant prices.
The Acting Prime Minister says there are people who are telling him that even with 42 percent duty, if they are allowed to import chickens from a few other sources, they could pay 42 percent duty and yet sell whole chickens at a price cheaper than the local producers.
Professor Prasad says they want more efficiency, production and fairness in what they are providing.
He adds that to mitigate challenges relating to cost of living, they have expanded VAT exemptions on 22 essential items, increased social welfare assistance, increased minimum wage, increase wage in the public sector, subsidised transportation costs, introduced back-to-school financial support and forgiven over $650 million in student debt.
