Rise in VAT to address ‘gaping debt hole’

THE increase in value-added tax (VAT) from 9 to 15 per cent is to address the serious “gaping debt hole” left behind by the FijiFirst government, says Assistant Minister in the Office of the Prime Minister Sakiusa Tubuna.
He told Parliament the debt hole was a record for Fiji and was largely the creation of the previous “two-men dictatorship”.
“We have to do this to ensure that we cover the various gaping holes that you (Opposition) have created,” Mr Tubuna said.
“The Coalition Government has been transparent and consultative when it comes to this budget.
“We have made it clear that difficult decisions needed to be made to address the major debt crisis we have found ourselves in.
“In his State of the Nation address just before the budget announcement, the Honourable Prime Minister Sitiveni Rabuka highlighted that to rebuild this nation it did not mean for business as usual.
“Government needed to consider hard decisions now to ensure future growth and prosperity.
“Yes, VAT has increased, but we have also put in place a number of measures to mitigate the adverse impacts to the poor.
“We will increase social welfare payments, reduce duty on certain goods and make a commitment to increase access to basic services.
“We recognise there will be a short-term pain, but this is ultimately for the long-term benefit of all Fijians for a resilient and sustainable Fiji.
“I reiterate the Honourable Prime Minister’s message that this budget has been prepared to consolidate government finances, minimise wastage, address our high debt level, allocate resources to the priority sectors, and increase access to basic services.”
Mr Tubuna said the 2023-2024 National Budget was a people-centered and forward-looking
budget.