Government chooses revenue growth over tax policy – ​​FBC News

Finance Minister Professor Biman Prasad says the cost-of-living strategy is not, or no longer, based on the country’s tax policy.

Citing the example of zero-rated items, Prasad says prices have gone up anyway because import and production costs have gone up.

He argues that from a government perspective, the fundamental problem of the high cost of living can be solved by raising people’s incomes.

“So in the last budget we have consciously provided additional funding to the agriculture sector. A big increase. We have provided subsidies to the non-sugar crop sectors, fertilisers, we decide. Sugar has come from us, it was at a record price last year and it is even higher this year. We are seeing an increase in income in the rural sectors because of the government’s policies.”

Finance Minister Professor Biman Prasad

Prasad added that they felt it was necessary to raise the minimum wage because Fiji National Provident Fund data shows that wages and salaries in the formal sector have increased by 10-12 per cent.

“So there was this natural adjustment. But for people on the lowest incomes or wages, we thought it was important for us to raise the minimum wage.”

The minimum wage will increase to $4.50 on August 1 and to $5 in April 2025.