#header-inner img {margin: 0 auto !important; #header-inner {text-align: Center ;} Fiji Coupfourpointfive: VAT hike hypocritical and already proving unpopular

Saturday, November 27, 2010

VAT hike hypocritical and already proving unpopular

POVERTY: Vat increase will see locals digging deeper into their pockets.


By Jone Baledrokadroka

Now that the illegal interim regime has raised VAT to 15%, let us recap the ruckus that the Fiji Labour Party member, Daniel Uraia, and chief coup apologist said about the whole idea back then when there was a parliament. This is taken verbatim from Hansard.


HON. D.U. MANUFOLAU: Mr. Speaker, Sir, I rise to contribute briefly to the 2007 national Budget.

Sir, I am in agreement with the honourable Minister for Labour, that he will resign from Cabinet should Government further increase VAT. This will, (in view of the fact that since the existence of the SDL Government) embark on increasing this indirect tax measure from zero to 10 per cent, further increased to 12.5 per cent and now the stomach hitting 15 per cent.

Sir, VAT is a regressive tax that takes no account of an individuals' earning capacity or financial status. Through VAT, the poorest of the poor will have to pay the same as the richest of the rich. Do you consider that as a fair system of taxation? No, definitely not. Therefore, I call on the honourable Members of the SDL Government, to explain this to those who live in villages and rural areas and those earning below the poverty line wages. I am sure, Sir, they will be blessed with answers from these people.

I call on the Government to initiate a study and find out if there is limit to the VAT tax rate and of the overall rate of tax collection in this country. Sir, I call on this, because in a situation of low level of this country's development, large size informal economy and questionable use of tax dollars by this Government would seem that the country has passed a reasonable limit of taxation. If such is indeed the case, then I shudder to imagine the future we have to face.

Sir, I must warn the Government that any further increases in tax has the potential to:

(a) hurt work incentives

(b) depress growth

(c) reduce job creation; and

(d) spread poverty beyond the 34 per cent of our population who are currently living below the poverty level. Unquote.

So what has changed Mr DU Manufolau? The people of Fiji would like to know. 

Answers also need to be forthcoming from the illegal leader, Bainimarama - for it was he who used it to justify the 2006 coup and to rescind Qarase's VAT increase.

Typical of the hypocrisy that runs deep in this regime, VAT is now being heralded as critical to the recovery of the economy and in helping "the government earn more to pay off debts." 
But the regime may find itself a tad more unpopular than it would like to think. Look to Frank Bainimarama's Facebook (usually a shrine to the illegal leader) and you'll find a thread of rebellion.
These folks have unabashedly denounced the 2.5% increase and have, rightfully, singled Bainimarama out as the original sinner. It is as has been said - daylight terrorism against one's own people:



come on!!!!! give the Government back to the people. Why do we citizens have to suffer more by paying more taxes!!!!!!!!! People are already poor!!!!!

$3.4billion dollars in debt. Now I see the rational for the VAT moving up to 15%. So I was right, Fiji aint got no cash, just plenty dinau.

Consumers tighten you belts 2011 increase in vat to 15%.
VAT increased to 15%, 1 cent reduction on mob call charges ecetera, ecetera ecetera, betterment? Mmmmmmmmmm


mark manning said...

It's amazing how easy it is to buy someone's arse for a few dollars, as easy as a prostitute !!
This Regime from the outset, must have had a few hundred million stashed away to buy the likes of this man !

Anonymous said...

There is no doubt about it, Fiji is broke but 'watch dogs' are in place like the Commerce Commission and the Consumer Council whose CEOs are genuinely interested in those they serve and their work is praised by the common people - check the papers and radio programmes. The serious question though is how long will the FNPF last with Government's intervention in its business without a squeek from the Reserve Bank of Fiji?

Anonymous said...

There is no doubt about it, Fiji is broke but 'watch dogs' are in place like the Commerce Commission and the Consumer Council whose CEOs are genuinely interested in those they serve and their work is praised by the common people - check the papers and radio programmes. The serious question though is how long will the FNPF last with Government's intervention in its business without a squeek from the Reserve Bank of Fiji, the supposed 'watch dog' for Fiji's finance, they were not reprimanded for failing to blow the whistle on NBF and they have since continued to be useless.

Anonymous said...

sa i vei na Poverty Alleviation Scheme e a tukuni mai ena gauna se qai tauyavu mai kina na matanitu sese qo?
sa qai tu na da-liers, dishonesty and slave-masters all have your day in God's hands.

Anonymous said...

I kai dia tend to be impressed with you some times. It seems you are heading to lead the new political party towards the next elections!!!

I will support you, because you are balanced with comments sometimes but sometimes you seem to not see all sides of issues, but your intensions look clear.

Maybe last time the increase in military spending was supported by Chaudhry to keep his boss happy who in turn kept his military council happy by the back pay saga.

This time it is Aiaz who chose to increase VAT based on IMF recommendation using that as an excuse to justify the increase as their recommendation.

Little that he took into account that the IMF experts only speak from paper transaction as to balancing the books and they do not see the income capacity of the Fij's society if that recommendation is sustainable to the people.

If debt payment was so necessary, then why the fuck has the military budget been increased under the guise of improvements necessary.

They could have done with $20m less but then how else will military council be silenced without having filled their pockets.

So they have to increase VAT to feed the lamu sona brigadiers to keep Aiaz forgiven as he is good bloke feeding them well!!

Anonymous said...

@ M&M.
Teaching people such as this anything about theft & corruption would be like giving Dolphin's swimming lessons.

Jake said...

The mendacity of this person knows no bounds he quotes from one of the most unreliable and vacuous miscreant that has ever grace the hall’s of parliament.

The truth is when Qarase and his self-indulgent SDl party attempt to increase value added taxes to 15% they through their greed weren’t willing to compensate those below the tax threshold of $9000 this in turn would have a devastating effect on society.

When Bainimarama justifiably deposed those SDL reprobate’s it was the making of equitable nation through justness where they systematically lowered the cost of food items from 27% to 15% and raised the tax threshold levels from $9000 to $15000 also where some selected food items incurred a 0% tax.

Is this not fairness compared to the rogues of old so what is a further 2.5% increase in value added tax compared to the savings enjoyed by the many and not the few.

Every once in a century a true leader is born Fiji is very fortunate to have such a leader.

God bless corrupt soul Jone.


Anonymous said...

@anon 8:00pm

The Commerce Commission has only succeeded in raising the price even higher. Only the first time they put price control, the prices were actually lowered as they said, and that was for the benefit of the people who celebrate diwali. Now the prices of the same items are even higher that before.
Only Consumer Council is doing a great job. Thank you Premila Singh.

Anonymous said...

Reserve Bank of Fiji right now is without a Leader and no one has the guts talk because everyone is frightened for losing their job.

Might as well tell them they are useless watchdogs-Dogs with any teeth.

Anonymous said...

thanks vat came 4 years later. if we had pre 2006 government,we would have been millionaires like Zimbabwe. more agriculture scam, fnpf would have been finished and god knows what.

Anonymous said...

Military macro economics. (Workers).

Encourage growth (productivity) by increasing taxes (burden).
Yeah right.

Anonymous said...

Dan Urai is just another big liar and thief like his master, Ayarse and frank have taken their queue from them. Not surprising at all. Couop corrupts anyway. people like Jake should be sent to scrub Ayarse balls, he does not know the difference between leadership & a dictator.