The Fiji Public Service Association (FPSA) says the recent World Bank report that recommends an increase in value added tax (VAT) and removing VAT from essential items has to be rejected.

FPSA general secretary Judith Kotobalavu says the recommendations “borders on insanity”.

“It is important to note that World Bank’s policies and recommendations are always controversial and, simply put, it deserves criticism as it has received from several quarters,” Ms Kotobalavu said.

“It has also been seen that the bank prioritises the interests of developed countries and multinational corporations over those of developing countries like Fiji.

“We believe that it would have been better if the report advocated policies that aim to reduce poverty, such as increasing access to education, healthcare, improving infrastructure and promoting small and medium-sized enterprises.

“It could also have suggested policies that aim to improve governance, such as reducing corruption, improving financial management and promoting transparency and accountability.

“We suggest that the government’s priority at this time should be to ensure that social safety net programs be implemented for those who are marginalised and are counted in the poorest of poor.”

Ms Kotobalavu said ensuring the nationality and social safety net programs was crucial to the effectiveness in reducing poverty and protecting vulnerable population over the long-term effective implementation of social safety net programs.

“Government should ensure that programs are implemented effectively over the long term with regular monitoring and evaluation of social safety net programs which is crucial to ensuring sustainability over the long term.”