FINANCE Minister Professor Biman Prasad says they are not going around spreading lies about the cost of living.
He said the recent rise in the cost of living was a result of increased freight costs and other related issues, not government policies.
“We are not going around spreading lies about the cost of living or the cost of doing business,” Prof Prasad said.
“We are doing the right thing to fix things.”
During the budget consultation in Labasa, he said, the Government had been criticised for the 15 per cent value-added tax placed on basic food items.
“Previously, there were three value-added tax rates, it was nine, 12 and 15 per cent.”
He said it was essential to strengthen the country’s fiscal position.
“The different rates caused significant revenue leakage, so we removed the nine per cent rate and kept the 15 per cent. We also introduced a zero VAT rate for 22 basic food items and medicines.
“Those pointing out on the VAT rate were the same individuals who had overseen high inflation rates and a 15 per cent VAT rate between 2011 and 2015.”
Prof Prasad said there’s been significant progress in the country but there was still a lot more needed to be done.
