The recent accolades for the Fijian business community come as Deputy Prime Minister and Finance Minister Professor Biman Prasad acknowledges their role in passing on cost savings to consumers due to government tax reductions. This collaboration has contributed to lowering inflation and easing the cost of living, a noteworthy shift in Fiji’s economic environment.
Professor Prasad expressed his appreciation for the joint efforts between the government, regulatory agencies, and businesses. He praised the business community for reflecting VAT reductions in consumer prices, reinforcing that these fiscal decisions have been largely beneficial to the Fijian people.
Additionally, Fiji has experienced seven consecutive months of negative inflation, indicating a decrease in living costs, which counters public criticism suggesting government policies were aggravating the cost of living. The Reserve Bank of Fiji’s record profit transfer, mainly driven by high interest rates in international markets, exemplifies another pillar of support for government finances.
In alignment with previous government steps, such as introducing zero VAT on 22 essential items and establishing support programs for students and civil servants, these measures underscore Fiji’s comprehensive strategy to stabilize its economy. Further fiscal efforts include salary increases for civil servants and provisions to maintain financial stability amidst global economic pressures.
The government’s concurrent dedication to fostering an inclusive economy and mitigating current economic challenges lays a hopeful foundation for sustainable growth. As the dialogue between government and industry continues, there is a buoyant outlook for Fiji’s financial trajectory, suggesting a future of improved economic resilience and enhanced living standards for Fijians.