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About The Rotten State

"One man's quest to provide regular commentary about the rotten state of affairs in Fiji via this blog."

VAT Increase!

Below is one of the letters to editors to FT on Saturday, February 12, 2005. I reckon he's hit the nail on the head.

Increase VAT so that the rich can help the poor! Absurdity has it's limits, but this is beyond words... Rote Jone cements his reputation as one of the most incompetent buffoons that has been in charge of our money. This is the same guy that has been asking for supplementary budgets. What the hell is he spending the money on? Half assed, affirmative action?

I am so amazed at the reason given for the increase in Value Added Tax by the Finance Minister Ratu Jone Kubuabola.

He says there was a need to increase VAT because those who were rich would pay more and assist the poor. How on earth is this reason justified?

Can someone from the Ministry of Finance explain to me how does this work? With the increase in VAT two years ago and now the ever increasing price of goods and services, everyone feels the "pinch" and the worst affected are the poor who are barely able to make ends meet.

Has the minister done a survey to find the percentage of rich people in Fiji and if so how does he classify someone who is rich and how has the increase in VAT contributed to reduce poverty in Fiji?

Does this mean there are more rich people than the poor.

The reason stated by the minister makes me wonder if this was the real reason for the increase in VAT.

How much of the increased revenue that was allocated to help the poor and if so why has the poverty rate gone to 15 per cent.

If the minister really wants to make the rich pay and help reduce poverty than the increase in vat should be been placed on the luxury items which only the rich can afford rather than on basic food items.

The Minister should think before he makes a comment. Fiji's literacy rate is increasing so be careful how you word your statements and remarks. Elections are just around the corner.

Vijay Krisha
Nadi

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