Fiji Time: 3:33 AM on Wednesday 28 September

Fiji Times Logo

/ Front page / News

NFP: A-G got it wrong

Avinesh Gopal
Thursday, July 03, 2014

THE National Federation Party says Attorney-General Aiyaz Sayed-Khaiyum's rejection of its commitment to reduce Value Added Tax from 15 to 10 per cent if it comes into power is anti-poor.

"It's clear that this government is only concerned about raking as much revenue as possible even if it means squeezing the pockets of the poor," said NFP leader Biman Prasad.

While launching the Prime Minister's Exporter of the Year Award last week, Mr Sayed-Khaiyum spoke about the VAT reduction issue, something that the NFP leader said the party would do if it wins the general election and forms the next government.

Mr Sayed-Khaiyum had questioned how the party would get the income it would lose from the VAT reduction.

But Mr Prasad said: "VAT is a consumption based tax. It means the revenue collected from VAT is dependent upon total consumption."

"So a reduction in VAT from 15 per cent to 10 per cent does not necessarily mean that revenue collection from VAT will decrease by 33 per cent.

"The Attorney-General has got it wrong when he stated that VAT revenue will decrease by 33 per cent if NFP reduces VAT to 10 per cent."

Mr Prasad, an economist, said the government was projected to rake in more than $770million in VAT collection alone this year.

He said the reduction of VAT to 10 per cent would mean the people of Fiji, especially the poor, would save more than $256m.

"The increase in VAT and increase in fiscal duties has seen the cost of basic food items and other necessities increase by 60 per cent in the past seven years.

"It becomes the moral and ethical responsibility of any person aspiring to become a politician as well as any political party to heed the plea for assistance from our citizens." Mr Prasad also invited Mr Sayed-Khaiyum for a public debate on the VAT issue, good governance, transparency and accountability.








Fiji Times Front Page Thumbnail

Kaila Front Page ThumbnailFiji Times & Kaila Frontpage PDF Downloads

Use the free Acrobat Reader to view.

Westpac
Code Inward TTs Outward TTs
CAD 0.65420.6352
JPY 50.302747.3027
GBP 0.38000.3720
EUR 0.43940.4274
NZD 0.68690.6539
AUD 0.65110.6261
USD 0.49660.4796

from

$0.00

Exchange Rate updated on 27th September 2016

Today's Most Read Stories

  1. Rugby death
  2. Double trouble
  3. Aussies wary of Fijians
  4. PM attacks NFP
  5. Focus on iTaukei
  6. Pastor guilty of rape
  7. Locally-produced movie set to hit the big screens
  8. Ministry eyes foreign doctor recruitment
  9. Prove claims, MWH told
  10. Families without lots

Top Stories this Week

  1. Nurse is a lawyer Friday (23 Sep)
  2. Ali beats 'death sentence' Thursday (22 Sep)
  3. Road closure Saturday (24 Sep)
  4. Pastor makes case in rape trial Wednesday (21 Sep)
  5. Rugby death Tuesday (27 Sep)
  6. Rawaca out Sunday (25 Sep)
  7. Private jets attract attention at Nadi Airport Sunday (25 Sep)
  8. After Ben Ryan Thursday (22 Sep)
  9. Three Cavuilati, 6 Olympians in Fiji 7s squad Sunday (25 Sep)
  10. Police investigate rugby 7s organiser Monday (26 Sep)