Cost of living still high despite VAT reduction, says Premila Kumar

In 2023, the Government increased Value Added Tax from 9 percent to 15 percent, triggering widespread increases in prices.

Although VAT was later reduced to 12.5 percent, the prices of goods and services remain high.

While responding to the President’s address in Parliament, Opposition MP Premila Kumar says there is a growing gap between the government’s commitments and the reality faced by ordinary Fijians.

She told Parliament the speech was hopeful, but the real challenge lies in turning those promises into real outcomes on the ground.

Insert: Premila Kumar on PM 9th March 26

Kumar says the rising cost of living remains the most serious issue facing households across the country.

She says families are still paying more for the same goods and services, including everyday food items such as bread, meat, fish, vegetables and beverages, as well as services like hairdressing and personal care.

Kumar says the government came into power promising to ease the cost of living, but instead introduced higher taxes, increased fees and charges, and now faces the possibility of higher electricity tariffs.

Kumar also questioned how the government is using the additional revenue collected through higher taxes.

She says government leaders have repeatedly highlighted increased revenue collection, but ordinary citizens are not seeing meaningful improvements in development or relief.

Kumar asked that if revenue is rising, where the money is going.

Insert: where the money is going 9th Mar 26

The Independent MP also warned that the country’s debt levels are increasing.

She says the 2025–2026 Budget shows a debt financing requirement of about $1.488 billion, which she says is significantly higher than previous years.

According to Kumar, much of the borrowing is being used to fund day-to-day government operations rather than long-term development projects.

She claims the current government is on track to add more than $3 billion to the national debt within a single term.

Kumar also raised concerns about declining investor confidence.

She cited a Reserve Bank business outlook survey showing that businesses are increasingly worried about high operational costs and uncertain economic conditions.

She says companies are delaying expansion and hiring as a result.

Kumar says the government cannot build a private-sector-led economy while taxing and crowding out the very sector it claims to support.

Kumar also questioned the government’s commitment to the rule of law.

She pointed to controversies surrounding the dismissal of the former Commissioner of the Fiji Independent Commission Against Corruption and the handling of a costly Commission of Inquiry.

Kumar also raised concerns about appointments within key legal institutions and warned against what she described as increasing concentration of power within the Prime Minister’s Office.

Kumar urged the government to focus on delivering real results rather than making promises.

She says Fijians do not judge governments by speeches but by their grocery bill, electricity bill, hospital experience and job prospects.

Kumar concluded by saying vision without delivery becomes illusion.