The 2010 Revised Budget has been made public and expectations are high that the new measures will achieve the desired results in having a sustainable economy for the benefit of everyone in Fiji.
The government has announced strict measures in the budget review to ensure that imports are reduced, civil service costs are reduced and government revenue increases through targeted revenue measures.
Prime Minister, Commodore Voreqe Bainimarama said it is necessary to realistically look at government finances and how new incentives can be provided within it's means to the commercial sector but also take those living below the poverty line into account.
Quickly looking at the revenue measures and how it will affect you.
To encourage local production of vegetables, the duty on all imported fresh vegetables currently under the 5 percent duty band will be increased to 15 percent, which means that the prices of imported fresh vegetables will increase from immediate effect.
Commodore Bainimarama has also announced that to assist companies in the processing of peas, the fiscal duty on shelled peas will be reduced from 5 percent to 0 percent.
The Prime Minister said the zero rating for split peas, rice and tinned fish will be maintained to assist low income earners.
Duty has been reduced for certain motor vehicles, buses and trucks. Commodore Bainimarama said to assist low and middle income earners in purchasing new fuel efficient motor vehicles, fiscal duty on new cars and other passenger vehicles with capacity not exceeding 1500cc will be reduced from 32 percent to 15 percent.
At the same time, the age limit for used or reconditioned motor vehicles imports has also been reduced from 8 to 5 years.
Commodore Bainimarama said these measures will assist in reducing fossil fuel imports and minimize pollution.
Fiscal duty on new buses for the transport of 23 persons or more will be reduced from 32 percent to 5 percent and import excise reduced from 15 percent to 5 percent.
Commodore Bainimarama has encouraged all bus proprietors to take advantage of this reduction as soon as possible.
A 12.5 percent VAT has been imposed for General Insurance with the exception for medical, term life and Workers Compensation.
He said the imposition of VAT on general insurance is consistent with practices in jurisdictions such as Australia and NZ.
It has also been announced that the Airport Departure Tax will be increased from $75 to $100.
There are more incentives for companies listed under the South Pacific Stock Exchange.
The distribution of dividend from listed companies to shareholders will now be treated as deemed tax paid.
The Prime Minister said this incentive is in addition to the recently announced reduced corporate tax rate of 20 percent for listed companies.
Fijivillage has received confirmation that all these measures come into effect from today.
In the revised budget address, Commodore Bainimarama also announced a reduction in government's total expenditure and increased revenue for 2010.
Total revenue is now forecast at 1.496 billion dollars compared to the earlier forecast of 1.486 billion dollars while total government expenditure is forecast to be reduced from 1.790 billion to 1.715 billion dollars.
He also announced some of the reform processes which are currently underway, with an assurance to the people that the government will not tolerate anti-competitive behaviour.
Commodore Bainimarama also confirmed that the bus fare assistance, text book assistance and the 30 dollars Food Voucher Programme will continue.
The Prime Minister said the budget review was necessary due to the unanticipated expenditure totalling 143 million dollars due to Cyclone Mick and Cyclone Tomas.
On to reactions on the revised budget.
Increase in the duty for imported fresh vegetables from 5 percent to 15 percent will boost the local farmers to produce more for the hotel industry.
Agriculture minister, Joketani Cokanasiga said this incentive is to assist the farmers.
Fiji Hoteliers Association President, Dixion Seeto said most of their members are now looking at owning their own farms
The Fiji Bus Operators Association President, Zain Dean is pleased that duty has been reduced for new buses and we will definitely see new buses on the roads.
Fiji Motor Traders Association President Suresh Singh has welcomed the reduction of duty on certain motor vehicles.
However owner of Sharma's Motors, Sachida Sharma said people may have to pay more for second hand vehicles.
President Women in Business, Fiji Dr. Nur Bano Ali said goverment has positive thought for business progression in the country.
Meanwhile the increase of the departure tax from $75 to $100 will not affect the number of tourist that will come for holiday in Fiji.
Fiji Hoteliers Association President, Dixon Seeto said the increase is not that significant when compared to overseas currency.
There will not be any pay cuts within the civil service in its attempts to reduce the wages and salary bill an estimated $40 million this year.
While announcing the 2010 revised budget this morning Prime Minister and Minister for Finance Commodore Voreqe Bainimarama revealed that a number of measure to reduce government expenditure and increase revenue.
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Speaking at the press conference after the announcement of the revised budget, Permanent Secretary for Finance John Prasad stressed that the savings will be achieved through better utilization of the current workforce.
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