The reduction in value-added tax (VAT) has failed to deliver the relief many families were hoping for, according to Opposition MP Premila Kumar.
Speaking in Parliament during her response to the President’s address, Ms Kumar said the cost-of-living crisis remained a daily struggle for many households across Fiji.
“Our people hear the Government talk about inclusive growth yet they struggle every day with the rising cost of living,” she said.
Ms Kumar pointed to the Government’s decision to increase VAT from 9 per cent to 15 per cent in 2023, saying it immediately pushed up the price of goods and services.
“In August 2023, the Government increased VAT from 9 per cent to 15 per cent.
“The impact was immediate.
“The price of almost everything went up.”
She said the later reduction to 12.5 per cent had done little to bring prices back down.
“But by then the damage had already been done.
“Businesses had increased their prices, and many of those prices have remained high.”
Ms Kumar said statistics showed the price of many everyday food items had continued to rise.
“Figures from the Bureau of Statistics show that over 12 months until February 2026, prices have increased for many everyday food items – bread and cereals, meat, fish, vegetables, and even tea, coffee and soft drinks.”
She said ordinary people were feeling the pressure.
“When groceries become more expensive, when household bills keep rising, and when families struggle to make ends meet, talk of ‘inclusive growth’ means very little.”
