Suggestions

for next government

INTRODUCTION of a capital gains tax and a rent resource tax, reforms to government ministries, and legislation to cover fair trading, quality assurance and standards and anti-dumping are likely to be con sidered by Fiji’s democratically elected government next year.

In his budget presented on Novem ber 26, Deputy Prime Minister and Minister of Finance and Economic Planning Josevata Kamikamica said he would make the recommendations to the next government.

Kamikamica also outlined measures in direct and indirect tax and licence control, deregulation, reductions to

government expenditure, wage/labour

reform and specific industry incen tives. Many of the reforms are subject to future government confirmation, but Kamikamica said the budget consisted of final major policy changes that should ensure Fiji’s future as it heads into the 21st Century.

The budgeted gross deficit for 1992 is estimated to be 5F74.9 million or, after adjustment for loan repayments, a net of $F22.5 million one per cent of projected Gross Domestic Product.

The introduction of Value Added Tax (VAT) and corresponding cuts in direct taxes are stated to be revenue neutral. The cost of the tax cuts (consisting of increasing the tax-free threshold to $4,500, reducing the number of tax brackets and reducing the maximum tax rate to 35 per cent) estimated to be $34 million in 1992, is financed by $13.5 million additional revenue from Customs and Excise measures, $3.5 million in a review of fees and charges and $l7 million from

Vat.

He also announced the removal of price controls on most goods. □