The government will lose more than $256 million in revenue in a year if Value Added Tax is reduced from 15 percent to 10 percent.
National Federation Party Leader, Doctor Biman Prasad recently publicly stated in its Annual General Meeting that NFP will reduce VAT on all goods and services if it forms the next government after the September 17th general election.
Based on the 2014 National Budget forecast, it has been established that VAT is the largest revenue earner for government.
For this year, VAT revenue is projected at $777 million, around $97 million higher than last year.
Calculations reveal that $256 million in VAT revenue will be lost by government if NFP forms the next government and makes this change.
Doctor Biman Prasad was asked where the revenue of more than $256 million will be brought in if it is lost through VAT or what types of cutbacks will be done.
Doctor Prasad said he is an economist and it can be done.
He only said that NFP will look at other taxes amongst other issues but he refused to give full details.
We pensioners remember prior to Frank taking control of government, that Qarase was going to increase VAT from 12.5% to 15% 8 years ago, Frank said it would not be increased. Eventually the high cost of government plus the undisclosed salaries paid to Frank and his Minister for Most Things made it necessary to increase VAT to 15%.
On the matter of salaries President Barak Obama receives an annual salary of US$400,000 and the USA has a population of 314,000,000 that is 314 Million. We pensioners estimate that pro rata Frank and his Minister for Most Things pay themselves a total salary far in excess of that paid to Barak Obama. Of course given that the Minister for Most Things has disbanded the Government Accounts Committee we taxpayers may never know the real truth.
The question we Pensioners and others need to ask “Is Dr. Biman Prasad a competent, transparent and honest person, and will he, unlike the present administration, be completely transparent in all matters of government.”