Seruiratu demands fuel VAT cuts now

Fiji's Opposition Leader, Inia Seruiratu, has accused the government of operating in a state of chaos and panic, claiming it is unable to offer meaningful support to ordinary citizens amidst rising costs.

Seruiratu highlighted the significant burden on Fijians, who now face exorbitant costs for daily activities like commuting to work, taking children to school, and running businesses. He expressed deep concern over the recent, unprecedented surge in fuel prices, which came into effect yesterday.

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Fijians now have to pay an arm and a leg simply to get to work, take their children to school, run businesses, or carry out daily activities.

Adding to his criticism, Seruiratu pointed to the government's admission in Parliament that a $47 million grant from Australia would not be allocated for direct fuel relief. Despite being presented as support for the fuel price shock, the funds will reportedly be absorbed into the consolidated fund and spent according to the government's own priorities.

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I also call on the Government to seriously consider work-from-home arrangements across the public service wherever operationally possible.

The Opposition Leader is calling for immediate action, urging the government to temporarily remove or substantially reduce the 12.5 percent Value Added Tax (VAT) on fuel. He argues that this measure would cushion the impact of price hikes, provide immediate relief to consumers, support transport operators, and reduce pressure on businesses, thereby preventing further increases in the cost of goods and services.

Furthermore, Seruiratu suggested that the government should lead by example by cutting its own unnecessary expenditures. He criticized the size of the executive, suggesting many ministers and assistant ministers have failed to deliver tangible results. He called for a serious Cabinet review and the removal of underperforming officials, stating that taxpayers should not fund an oversized executive while families struggle with record fuel prices. Seruiratu also expressed concern that ministers and permanent secretaries continue to travel overseas despite a directive restricting such trips.

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Taxpayers, he notes, cannot continue to fund an oversized executive while families are being asked to absorb record fuel price hikes.