NEWS

NFP Will Push Up Debt $2 Billion: AG

The National Federa­tion Party’s newly-launched manifesto will increase our debt by $2 billion, revealed the Minister for Econo­my and Attorney-General, Aiyaz Sayed-Khaiyum. He said they were astounded at the level
03 Nov 2018 15:37
NFP Will Push Up Debt $2 Billion: AG
Pointing in the right direction A-G advises Josaia Meau, 60, of Savusavu on a legal matter. Photo: Jyoti Pratibha

The National Federa­tion Party’s newly-launched manifesto will increase our debt by $2 billion, revealed the Minister for Econo­my and Attorney-General, Aiyaz Sayed-Khaiyum.

He said they were astounded at the level of what could only be termed as gross negligence and irrespon­sibility displayed by NFP, in par­ticular its leader and his cohorts of advisers.

“They are prepared to bring about complete economic chaos just to win votes. It has now become clear beyond any doubt that NFP has gone into a full desperation mode. What they have offered in their manifesto are indeed be can only termed as full freebies,” Mr Sayed- Khaiyum said.

Speaking to the Fiji Sun after the FijiFirst family fun day in Sa­vusavu, Mr Sayed-Khaiyum said this would lead to unsustainable increases in expenditures of more than $1.7 billion.

He explained that massive rev­enue losses for Government of more than $500 million would come about through the removal of VAT, Environment and Climate Adaptation Levy (ECAL), Customs Duties, excise tax, income taxes.

“Initially at least 20,000 jobs will be lost, with more to follow, and initially at least 20,000 Fijians will be on reduced hours as businesses will suffer. Young graduates will hardly have any chance of jobs in the civil service when the retirement age is increased to 60,” he said.

“Hundreds of small businesses will close as exorbitant wage costs will destroy com­mercial viability. Inflation will skyrocket to around 25 per cent from the wages price spiral, despite the removal of VAT on some items. This is NFPs recipe for disas­ter.”

WHERE IS THE MONEY?

  1. VAT removal – $300 million revenue loss plus leakage through abuse
  2. Removal of ECAL – $150 million rev­enue loss
  3. Excise duty reduction on alcohol – $20 million revenue loss
  4. Import duty reduction – $20 million rev­enue losses
  5. Significant loss in PAYE, corporate tax collections as businesses close and people lose jobs.

MORE THAN 1.7 BILLION INCREASE IN ADDITIONAL EXPENDITURES/REBATES

  1. Building Penang sugar mill – At least $100 million
  2. Cost of social pensions – $140 million additional expenditure
  3. Sugar price top up – $45 million
  4. Housing – $200 million annually
  5. Merit Scholarships and Fee free first year scholarships – $200 million
  6. Conversion of TELS to grant – $350 mil­lion loss in potential repayments
  7. Tax rebate/subsidy for minimum wage – $700 million

And, he said, removal of plastic levy to destroy our sea and environment

“Who will foot the $2 billion bill? Will NFP increase corporate tax rate? Or lower the income tax threshold? Where are they going to get the unreasonably high fund­ing from? Will they stop road making and upgrades? Will they stop rural electrifica­tion? Will they stop connecting people to water?” Mr Sayed-Khaiyum asked.

“Such level of funding requirements will raise interest rates by at least five per cent and you will lose your house, your car and your farmland.” Edited by Naisa Koroi

Feedback: jyotip@fijisun.com.fj 

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