Reducing VAT by 2.5 per cent in the 2025-2026 National Budget is an insult to ordinary Fijians who seek relief from the rising cost of living, says Opposition MP Virendra Lal.
He told Parliament last week the hardships and suffering of ordinary Fijians would continue unabated, especially for those who do not have a regular income.
“Because for a basket of goods costing $100, he (Finance Minister) is giving them a relief of only $2.50,” Mr Lal said. “What good will $2.50 do?
“If we use the 2022 VAT rates, where VAT was 9 per cent, the same basket of goods would cost ordinary Fijians at least $6 less. That $6 was enough money to pay their taxi fare back home from the supermarket.”
Mr Lal claimed the extraordinary circumstances were created when VAT was raised to 15 per cent by the Government.
“These were created by the previous two budgets, where VAT was increased to and then maintained at 15 per cent, which absolutely decimated any remnant effects of the post-pandemic economic rebound because he (Finance Minister) taxed consumption — he taxed the very thing requisite for economic activity.”
