Fijian dictatorship promises tax elimination

Published: 9:46AM Tuesday November 29, 2011 Source: ONE News

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Fiji's military regime has announced its budget for the coming year, promising to reduce or eliminate taxes for 99% of all taxpayers.

But there are serious questions about where the money will come from.

Pacific correspondent Barbara Dreaver told TV ONE's Breakfast that there are a number of questions to be answered.

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"I can't work out how they are going to make this budget work," Dreaver said.

"And there are things missing from this budget. Like how much the military is going to get and where the money is going to come from."

According to government statements, airport taxes will be increased by about $7 to $107 to pay for the cuts.

This will make Fiji's airport tax the highest in the Pacific.

The government also claims to have pre-paid three loans already.

Despite the largely unanswered questions, Dreaver said it appears to be "pretty good" for most Fijians.

"If you earn up to $15,600 its tax free, and quite a few people earn that because they aren't paid that much in Fiji. Up to $25,000 it's 7% and up to $50,000 it's 18%."

"All public servants are going to get a 3% pay rise. Policemen are going to get a 9% pay rise, which will hopefully help to improve their patchy reputation," she said.

"Anything to do with tourism will have a new tax on it."

The question that remains is what role China will play in the country's future and what Fiji is receiving from the Asian powerhouse economy.

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