|Is the PM sleeping during the Budget delivery?|
Themed 'A Strong Fiji, A Fair Fiji, A Healthy Fiji' the $3.4 billion budget has many promises but whether it delivers is another question.
Khaiyum has projected income for next year to be $3.13 billion.
Still no mention of the missing $1 million though!
Here are some of the highlights of the budget:
- The military will get $103.3 million
- VAT will drop to 9% from 15% but the cost of flour, cooking oil, dhal, kerosene and tinned fish and certain medicines will now increase
- Tourists will pay more tax. At the moment tourists pay 15% VAT plus 5% Service Turnover Tax. From January 1, they will pay 9% VAT, 6% environmental levy and 10% Service Turnover Tax.
- The Health Ministry will get $280 million
- Smokers will pay more with tax on cigarettes increasing to 12.5% with an additional health levy of 5% also charged to the purchase of the item.
- Fiji Airways will get $18 million
- Land Transport Authority will get an increase of $14.9 million
- Price of soft drinks to increase by 5c
- $5 million allocated to Legal Aid
- Importing used tyres will be banned from 2017
- $500,00 allocated to assist low income families, farmers and lease holders with iTaukei Land Trust Board arrears.
- Overseas investors who set up private hospitals with a minimum investment of $7million will enjoy a 10-year tax holiday.
- All new and used vehicles imported by car dealers must at least be Euro 4 compliant. This means vehicles should emit as little carbon as possible.
- Duty for basic toiletries like baby garments, undergarments, deodorants, skincare products, cameras, camcorders, sunglasses and binoculars will be reduced from 32% to 5%.
- 390 local flights will be subsidised
Read the budget here.