Government must remove the 15 per cent import value added tax (VAT) on fuel to give urgent relief to the people from escalating prices, says Fiji Labour Party leader Mahendra Chaudhry.
He said the current monthly increases on fuel prices would have a drastic impact on the entire economy, not just motorists, thus creating instability in the market.
“There is a major outcry out there at the increases effective today – from lorry drivers carting cane, bus and taxi operators, minibus and carrier operators and others,” he said.
“These increases will have a spiralling effect on the entire economy, pushing up the cost of goods and services at a time when living costs are already unsustainable.”
Mr Chaudhry said the Government needed to take action to counter the price increase and suggested removing the 15 per cent import VAT.
“It is already levying a 46c per litre Customs duty on motor spirits and 20c per litre on diesel and it can easily forgo the VAT on fuel as an immediate measure until the situation returns to normal.”
He said the Fijian Competition and Commerce Commission (FCCC) must move away from the practice of reviewing fuel prices every month.
“In November 2020, the FCCC wrote to us to say that it was “in the process of undertaking a review of the fuel pricing methodology and template. Some 19 months later we are still waiting for the new template to come into effect.
“Since then the FCCC has been silent on the issue, it shows complete insensitivity to the current plight of the people brought on by rising prices.
“The commission also needs to urgently review the margin it is allowing oil and gas companies and their intermediaries in the context of the current economic and market conditions, and in the public interest. This is something Labour has been pressing for some time now.”
He said FCCC and the Government must look into easing the financial burdens of the people instead of increasing the costs of living.
“FCCC cannot just argue that the increases are globally induced and then just sit back and not do anything.
“The situation is becoming unbearable and it is the responsibility of the Government and its institutions to look at all avenues that can be tapped to provide relief to the suffering public.”
- Questions sent to FCCC and Prime Minister Voreqe Bainimarama remain unanswered when this edition went to press.
