Fiji Labour Party Calls for VAT Reduction and Expanded VAT-Free Food List

The Fiji Labour Party (FLP) has urged the government to reduce Value Added Tax (VAT) to 10% and extend the list of VAT-exempt food items to help ease the burden of the rising cost of living.

During its National Council meeting in Nadi, the party passed a resolution calling for a VAT reduction from the 15% imposed by the Coalition government in 2023.

The council also proposed expanding VAT exemptions to include essential food items such as eggs, meat, marine products, and other key cooking ingredients to ensure better nutritional access for low-income households.

"Such essential items must be put within the reach of our poor," the council stated.

The FLP criticized the Coalition government, arguing that it lacks a concrete plan to address the ongoing cost-of-living crisis.

The council highlighted that while government ministers and MPs had received significant salary and allowance increases, ordinary citizens were struggling due to the VAT hike from 9% to 15% in the 2023/24 Budget.

“Labour had strongly opposed the increase, warning that it would fuel inflation, penalize the poor, and slow down economic recovery,” the council said.

Additionally, the FLP called for strengthening the price monitoring capabilities of the Fijian Competition and Consumer Commission (FCCC) to better regulate pricing practices.