FijiFirst General Secretary, Aiyaz Sayed-Khaiyum said that some political parties are giving wrong messages to the public that by reducing Value Added Tax, the price of food will go down.
While speaking during the campaign meeting at the Tavua Khatriya hall today, Sayed-Khaiyum said items like flour, sharps, rice, powdered milk, tea or cooking oil are already VAT free.
He added by reducing VAT how will prices of these items go down if there is no VAT on it.
Sayed-Khaiyum said these are imported items and Fiji has no control over their prices until it lands in Fiji.
He said the government has increased the income tax threshold to $16,000 and provided assistance like tuition fees and free bus fare to ensure people have more money in their pockets.
Sayed-Khaiyum added that foreign reserves during the Qarase led government was 300 million dollars in 2006.
The reserves now stand at 1.5 billion dollars.
The National Federation Party continues to said in its campaign meeting that they will reduce VAT from 15 percent to 10 percent to ensure prices of items go down.
