Fuel tax revenue remains a priority: PM Rabuka

Prime Minister Sitiveni Rabuka has defended the Government’s decision to maintain fuel-related taxes, describing them as a critical source of revenue.

His comments follow a parliamentary update on the global fuel crisis last week by Finance Minister Esrom Immanuel, who warned that eliminating fuel taxes would result in significant revenue losses for the State.

The Government collects more than 90 cents from every litre of fuel sold, including fuel tax of more than 40 cents and value added tax (VAT) on the retail price.

The position has drawn criticism from the Opposition.

Opposition MP Premila Kumar accused the Coalition Government of benefiting from rising fuel prices while failing to provide meaningful relief to households and businesses struggling with increasing costs.

Independent Opposition MP Ketan Lal also called for the immediate removal of fuel taxes, warning that rising diesel prices would increase the cost of food, consumer goods and essential services.

However, Mr Rabuka made it clear where his administration’s priorities lie.

“That is the Government priority which had been announced by the Minister for Finance,” Mr Rabuka said.

He said revenue collected through taxation was ultimately reinvested in public services and national development.