Opposition Leader Ro Teimumu Kepa’s motion to make regulations prescribing subsidies for selected basic food items to households whose net income is $12,000 or less has been defeated in Parliament.
Kepa said she is talking about low income earners and the poor whose situation is worsened if they are to pay tax on basic food items.
Finance Minister Aiyaz Sayed-Khaiyum said there is no way that the overall cost of living will go up.
Meanwhile, Local Government, Housing and Minister for Infrastructure Parveen Bala said this is a face saving motion for the Opposition.
He added the Opposition was shocked when the Finance Minister announced the reduction in VAT as they were saying before the announcement that VAT will be increased to 20 percent.
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