Usamate pushes for three-month fuel tax holiday

Opposition Member of Parliament Jone Usamate is calling on the government to implement a three-month tax holiday on fuel. He proposed removing Value Added Tax (VAT) and duties from July to September to alleviate financial pressure on households, farmers, and the logistics sector.

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The government cannot say it is powerless against rising fuel prices while continuing to collect more revenue from them.

Usamate suggested the upcoming 2026-2027 National Budget, due Friday, would be an opportune moment for the government to introduce this relief. He argued that the proposed measure would represent only a small fraction of government revenue.

The MP asserted that the government maintains high fuel prices through its tax policies. He pointed to the Pre-Election Economic and Fiscal Update, noting that global oil prices have risen due to the conflict in the Middle East, which in turn increases freight, energy, and import costs. Usamate stressed that while Fiji cannot control global oil prices, it can control fuel taxes, framing them as a policy choice rather than an unavoidable consequence of global shocks.

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However, it can control the taxes imposed on fuel.

"The government cannot say it is powerless against rising fuel prices while continuing to collect more revenue from them," Usamate stated. He further challenged the government to explain its tax collection practices if it claims inability to influence global fuel prices, especially when tax revenue increases alongside those prices.

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Global shocks are unavoidable but fuel taxes are a policy choice.