Business

VAT increase a positive change for Fijians

August 2, 2023 4:45 pm

The increase in Value Added Tax on certain goods is something to ponder, but some Fijians, they have chosen to see it from a positive perspective.

This is because the country still grapples with a massive national debt, and increasing VAT is just one way to solve this crisis.

Namosi villager, Asivina Siqawe says the change in prices has not really affected the villagers as food is readily available in the surrounding area.

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“For us in the villages and rural communities, it’s not really a big change because for us, the majority of our food that we consume daily is sourced from the garden, sea, and river.”

Another villager, Makelesi Marama, feels that it’s about time they started eating healthier foods.

“The change in prices now really teaches us a lesson to start changing what we consume daily. I think it’s best to start eating healthier foods rather than those frozen or tinned stuffs, just to go with what we earn daily.”

Meanwhile, Finance Minister Professor Biman Prasad says critics are forgetting that between 2011 and 2016, the VAT rate was 15% and only six items were zero-rated compared to the current 22 items.

“The critics continue to ignore the fact that there has been a massive increase in the social welfare budget and an increase in allowances in every aspect of the social welfare program, including an increase in the social pension by 15 or 25 percent.”

The Minister has also highlighted that overall, the critics know the facts of the VAT increase, while some are spreading false information and ignoring other provisions from the 2023–24 National budget allocation.

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