Fiji Faces Limited Revenue Options as VAT Cut Draws Criticism

• Fiji has limited ways to raise revenue because of its narrow tax base and rising spending pressures.
• Fiscal Review Committee Chair Richard Naidu said VAT is the only realistic tool to significantly boost government income.
• He argued cutting VAT was a mistake, costing hundreds of millions of dollars that could have supported services and infrastructure.
• Naidu said income tax has little room to grow, and the VAT cut likely did little to ease the cost of living.
• He welcomed better fiscal discussion and policy certainty, but said Fiji still needs tough decisions to fund national priorities.

Source: fbcnews.com.fj

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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