Ritika Pratap 
Mahendra Chaudhry [Source: FLP/Facebook]
It’s a flat Budget devoid of any innovative measures to grow the economy and address poverty, says Labour Leader Mahendra Chaudhry.
In his initial reaction to the 2023-24 Budget, Chaudhry says it is structured largely along the lines of the World Bank and the Fiscal Review Committee reports, except for the retention of the zero-rated VAT on basic food and other household items – under strong pressure from the people.
Chaudhry claims the rich seem to have done pretty well, seeing that the Minister has not deemed it necessary to tax dividend income.
Further, he says the top personal tax rate has been reduced from 44% to 39% and the social responsibility tax for those earning over $270k annually has been scrapped.
Chaudhry states a glaring omission in the Finance Minister’s address was any mention of government’s plans on employment creation and the retention of our skilled workforce migrating abroad by the hundreds for a more secure future.
He adds the Minister has let the workers down by deferring consideration of a much expected increase in the minimum basic wage, contrary to his campaign promises of 2018 and 2022
However, Chaudhry welcomes the restoration of FNPF contribution rate to 18% but says the grouping of the Fund’s pensioners with the recipients of social welfare benefits is deplorable.
He suggests that the right thing to do was to have restored their pre 2012 annuity rates, and to simultaneously revert the unlawfully reduced current rate of 8% to the pre 2012 rate of 15%.
Chaudhry says the Minister’s announcement that a new strategic plan is to be prepared to boost cane production sounds like the failed promises of the FijiFirst government.
Another promise not kept is that of doubling the welfare payment rates.
The two-tier increase from $100 per month to $115 and $125 per month for those between 60-69 years and over 70 years respectively, is not only inadequate bearing in mind the high cost of living, but also discriminatory.
