FIJI does not need to mimic other countries blindly, but it does need bold reforms.
This was highlighted by Lautoka IT professional and academic Mohammed Nafeez in an interview with this newspaper this week.
He said it was time for the country to rethink its tax system.
“Right now, the tax structure is squeezing the average Fijian dry,” Mr Nafeez said.
“Especially at a time when the cost of living is at an all-time high and wages are struggling to keep up.
“The Government talks about economic recovery and resilience but that starts at the grassroots.
“It starts with a Fijian family being able to put food on the table, pay for a prescription or pay a bus fare without being taxed into poverty.
“Every Fijian who works hard to earn an honest living is faced with an uncomfortable reality, our money is taxed not once, not twice, but multiple times before it can actually improve our lives.”
Mr Nafeez said the Government should earn revenue only once at the point of income generation.
“Whether you’re a farmer, teacher, taxi driver or small business owner, pay a fair income tax on what you earn, and then be free to spend it without further penalty.”
He said such a reform would:
- Boost consumer spending, as people keep more of their hard-earned money.
- Support small businesses, which struggle under layers of VAT compliance and duties.
- Ease inflationary pressure as prices of goods and services drop without VAT.
- Encourage savings and investment, without the fear of losing value through hidden taxes.
Mr Nafeez said some countries were already exploring simplified tax regimes.
“In the Gulf, for example, citizens enjoy zero income tax and minimal VAT.
“In Estonia, a flat tax system combined with no tax on reinvested profits has created a vibrant startup and innovation culture.”
