"Labour categorically rejects the FRC recommendation for a flat rate of 14% VAT across the board which removes the current VAT exemption from basic food items, medicines, baby food and 21 other household items. It will be a severe blow to the poor – particularly families on low incomes who constitute almost 70% of the population. It will drive more people into the poverty net. Most of the recommendations in the Fiscal Review Committee report favour the rich. Its impact will be felt across all sections of the economy, fuelling inflation and cost of living increases."
FLP leader Mahendra Chaudhry
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Fijileaks: Like the old East Germany, Naidu's FRC Report will split Fijians into two halves - between the rich and the poor - just like the old Trabant, Communist East Germany's answer to the Volkswagen, that Naidu was enjoying on 3 June 2023, after signing off his FRC Report on 31 May.
*Or did he leave for Europe/Eastern Europe before 31st May, for he was already posting a tongue-in-cheek response on his Facebook from Estonian capital Tallinn on 28 May 2023.
*When did the self-proclaimed CONVICTED LAWYER fly out of Fiji to experience "must -do event in Berlin, Germany - the Trabi Tour"?
Who can envy the wealthy corporate lawyer but go ask Fiji's POOR?
DEPARTURE TAX: "Those who travel (whether visitors or Fiji citizens) generally have the disposable income to do so. So there are good arguments, having regard to the principles of equity and sustainable revenue, to increase Departure Tax. The question is when and by how much. 4.128 We believe that the Departure Tax can return to its $200 rate over time. At this point the Committee is suggesting progressive increases to $150 and ultimately $200 by 1 April 2025." Naidu's FRC Report, 31 May 2023
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 "The Committee, made up of the 14 people named below, convened for the first time on 7 March 2023 and concluded its work on 18 May 2023, when the Report was handed in draft to the Minister of Finance for verification and feedback. The feedback received from the Ministry improved its accuracy and focus but the Ministry did not seek at any stage to influence the conclusions of the Committee." |    |
FRC Report favours the rich, penalises the poor
The Fiscal Review Committee (FRC) Report is Finance Minister Biman Prasad’s gift to the rich while penalising the poor, says Labour Leader Mahendra Chaudhry.
Biman will, of course, say that it’s not me, it’s the FRC. But it was he who commissioned the FRC and appointed its members – its chair, a proposed NFP candidate for the 2022 general elections who subsequently withdrew his candidature.
The National Economic Summit and the FRC were a prelude to his upcoming Budget – a move to pre-empt its direction, we believe.
Labour categorically rejects the FRC recommendation for a flat rate of 14% VAT across the board which removes the current VAT exemption from basic food items, medicines, baby food and 21 other household items.
“It will be a severe blow to the poor – particularly families on low incomes who constitute almost 70% of the population. It will drive more people into the poverty net,” warns Mr Chaudhry. ‘
“Most of the recommendations in the Fiscal Review Committee report favour the rich,” Mr Chaudhry added.
Its impact will be felt across all sections of the economy, fuelling inflation and cost of living increases.
It’s bad for businesses and the economy as a whole. It will add substantial costs to businesses, eroding their competitiveness and returns in both the local and export markets.
Mr Chaudhry said the $500m in revenue the Committee says the increase will generate is debatable, viewed against the additional government expenditure that it will entail. It is also highly likely that most of it will be spent in the unproductive sectors of the economy.
The recommendation is counter-productive as sharp increases in living costs will lead to renewed demands for salary and wage increases creating an inflationary spiral.
The government itself will become its victim having to incur millions in settling pending pay increase claims of public sector unions. The private sector too will be hit hard by its cascading effects.
The FRC has not considered removing the anomalies in taxation that favour the wealthy- like taxing dividend income or increasing the personal tax rates applicable to those earning over $50k or hiking the capital gains tax.
“ Overall, the recommendations of the report have political implications the Coalition must seriously consider.
“It would not be in their best interests to jettison their campaign promises to bring down the cost of living, by adopting a short-sighted Report likely to create more problems than it will solve,” Mr Chaudhry said.
The Fiscal Review Committee (FRC) Report is Finance Minister Biman Prasad’s gift to the rich while penalising the poor, says Labour Leader Mahendra Chaudhry.
Biman will, of course, say that it’s not me, it’s the FRC. But it was he who commissioned the FRC and appointed its members – its chair, a proposed NFP candidate for the 2022 general elections who subsequently withdrew his candidature.
The National Economic Summit and the FRC were a prelude to his upcoming Budget – a move to pre-empt its direction, we believe.
Labour categorically rejects the FRC recommendation for a flat rate of 14% VAT across the board which removes the current VAT exemption from basic food items, medicines, baby food and 21 other household items.
“It will be a severe blow to the poor – particularly families on low incomes who constitute almost 70% of the population. It will drive more people into the poverty net,” warns Mr Chaudhry. ‘
“Most of the recommendations in the Fiscal Review Committee report favour the rich,” Mr Chaudhry added.
Its impact will be felt across all sections of the economy, fuelling inflation and cost of living increases.
It’s bad for businesses and the economy as a whole. It will add substantial costs to businesses, eroding their competitiveness and returns in both the local and export markets.
Mr Chaudhry said the $500m in revenue the Committee says the increase will generate is debatable, viewed against the additional government expenditure that it will entail. It is also highly likely that most of it will be spent in the unproductive sectors of the economy.
The recommendation is counter-productive as sharp increases in living costs will lead to renewed demands for salary and wage increases creating an inflationary spiral.
The government itself will become its victim having to incur millions in settling pending pay increase claims of public sector unions. The private sector too will be hit hard by its cascading effects.
The FRC has not considered removing the anomalies in taxation that favour the wealthy- like taxing dividend income or increasing the personal tax rates applicable to those earning over $50k or hiking the capital gains tax.
“ Overall, the recommendations of the report have political implications the Coalition must seriously consider.
“It would not be in their best interests to jettison their campaign promises to bring down the cost of living, by adopting a short-sighted Report likely to create more problems than it will solve,” Mr Chaudhry said.
The FRC Committee had 14 members:
•(Chair) Richard Naidu– Commercial and taxation lawyer and a partner of the law firm of Munro Leys
•(Deputy Chair) Lisa Apted – partner of KPMG Fiji, chartered accountant and tax professional (sister of Jon Apted who is partner, Munro Leys)
•Reaaz Ali – company Director and entrepreneur from Nadi
•Vani Catanisiga – Co-ordinator of the Fiji Council of Social Services
•Edwin Chand – a company director and businessman from Labasa
•Neelesh Gounder – Economist and Deputy Head of School (Research) at the School of Accounting, Finance and Economics at The University of the South Pacific
•Matelita Katamotu – a business adviser and eco-tourism entrepreneur in Namosi
•Fantasha Lockington – Executive Director of Fiji Hotel and Tourism Association
•Kirti Patel – Librarian and community activist from Lautoka
•Pradeep Patel – Partner of BDO Fiji, a chartered accountant and tax professional
•Naibuka Saune – Chief Executive of Merchant Finance Limited
•Viliame Takayawa – A company Director and member of the SODELPA Management Board
•Barry Whiteside – A company Director and former Governor of the Reserve Bank of Fiji
•Mereia Volavola – A business consultant and former chief executive of the Capital Markets Development Authority.
*Most were welcome appointments but we also have NFP lackey and USP economist Goundar, the librarian and failed NFP candidate Kirti Patel (141 Votes), Labasa businessman Edwin Chand, son of failed NFP candidate Pramod Chand.
Welcome to Prasad's new Fiji, Oops, Khaiyum's 'Old Crony Fiji'
Fijileaks: Our photos imposed on the Report reflects the dangers of
Fiji's Haves and the Have-Nots
Fiji's Haves and the Have-Nots
Fiji Roads Authority:
"The [FRC] Committee was surprised to hear from the Fiji Roads Authority, which is budgeted to receive upwards of $400 million a year for capital and maintenance work on major roads, that FRA had no strategic plan; projects were selected by senior management and spending allocated on the basis of six-monthly grants allocated to it by the Ministry of Finance (in common with organisations such as WAF and the LTA). It agreed that this made long-term planning difficult."
The FRC Report, 31 May 2023
An investigation will be carried out in the cash flow issues and budget overspending.
The statement says FRA is currently facing a cash flow issue with its current Capital Expenditure (2022/23) of $350 million spent by December 2022.
In addition, and as at 30th April, 2023, the FRA still owes $38 million to 13 Contractors which is forecast to reach $55 million by June 30th. The Board has noted that there is no Strategic Plan in place, as the continued deterioration of our road network daily indicates a lack of planning, compounded by mismanagement by the Minister of Economy in the FijiFirst Government.
The Board has taken swift action to address this serious matter and is in full consultation with the Ministry of Finance. The Board has also consulted with FRA contractors. Ro Filipe says he has also initiated discussions with development partners in terms of supporting the infrastructure needs, who have responded positively. Ro Filipe further states a few major projects have been delayed resulting in contractors seeking variation payments to the contracted sum.
In this regard, he adds the Board will carry out an audit to justify substantial cost increases.
Ro Filipe further states a Whistle Blower report has been received by the Board alleging malpractices within the organization.
He has ordered a full investigation which will be carried out by the FRA Board.
Ro Filipe says regretfully, Public Works as a sector and Ministry has been seriously decimated in terms of intellectual capacity and assets by the FijiFirst Government for the last 16 years.
He adds the FijiFirst Government must explain where all Public Works Department assets went to.
Ro Filipe says there are other audit issues and reports, of which he will advise the people as they progress in their reform and re-set programme.
The statement says FRA is currently facing a cash flow issue with its current Capital Expenditure (2022/23) of $350 million spent by December 2022.
In addition, and as at 30th April, 2023, the FRA still owes $38 million to 13 Contractors which is forecast to reach $55 million by June 30th. The Board has noted that there is no Strategic Plan in place, as the continued deterioration of our road network daily indicates a lack of planning, compounded by mismanagement by the Minister of Economy in the FijiFirst Government.
The Board has taken swift action to address this serious matter and is in full consultation with the Ministry of Finance. The Board has also consulted with FRA contractors. Ro Filipe says he has also initiated discussions with development partners in terms of supporting the infrastructure needs, who have responded positively. Ro Filipe further states a few major projects have been delayed resulting in contractors seeking variation payments to the contracted sum.
In this regard, he adds the Board will carry out an audit to justify substantial cost increases.
Ro Filipe further states a Whistle Blower report has been received by the Board alleging malpractices within the organization.
He has ordered a full investigation which will be carried out by the FRA Board.
Ro Filipe says regretfully, Public Works as a sector and Ministry has been seriously decimated in terms of intellectual capacity and assets by the FijiFirst Government for the last 16 years.
He adds the FijiFirst Government must explain where all Public Works Department assets went to.
Ro Filipe says there are other audit issues and reports, of which he will advise the people as they progress in their reform and re-set programme.
