The "99 percent" have called and we have heard them. Beginning Jan. 1, 2012, Fiji -- the hub of international trade in the South Pacific -- will reduce or eliminate taxes on 99 percent of taxpayers and cut taxes across-the-board for businesses.
As a small nation historically swayed by larger economies, such as the United States and Australia, the time has come -- amidst uncertain global markets -- to fundamentally restructure our economy as a way to put money back into the pockets of our citizens and improve the climate for domestic and international business.
Critical components of our new economic policy are incentives to grow small businesses, which currently only make up about 10 percent of our economy, renewed investments in education and an emphasis on personal responsibility.
Poor and middle class Fijians have shouldered most of the tax burden for too long. So to achieve a fair and balanced tax system, Fiji is also temporarily instituting a "Social Responsibility Levy" -- to be applied progressively to anyone earning over $270,000 a year. This levy will apply to the top 1 percent. It will be reduced and eventually eliminated as people progress off of welfare programs and/or as Fiji's GDP grows.
One of the primary goals of these progressive changes is to help the Fijian people no longer feel constrained by the remnants of a colonialist past or the previous race-based governance system that fostered cronyism and corruption.
Since 2007, my government has enacted critically important political reforms that promote transparency and accountability, and ensure equal rights for all Fijians. We are creating a level playing field from which Fiji can base its future.
In 2013, we will have a new constitution, and in 2014 there will be free and open elections -- with universal suffrage for Fijians. For the first time in Fiji's history, there will be one-person, one-vote, one value.
Our path is guided by lessons learned from similar efforts around the world. Political reforms have the best chance of lasting when they are part of a comprehensive program that significantly increases the economic opportunities available to businesses, investors and workers.
This is why we reduced or eliminated taxes for 99.4 percent of taxpayers with an absolute rate ceiling of 20 percent for individuals (down from 31 percent) and businesses (down from 28 percent).
The less fortunate among us will pay no taxes at all.
To strengthen our commitment to serving the people, my government is increasing pay for civil servants as a way to attract and keep talent -- on top of which doctors and nurses will receive an added increase given their unique importance; yet, we are simultaneously introducing a performance-based management system across the entirety of government to ensure we only retain the best.
In addition, significant government-provided and market-created incentives for investors in 2012 will make Fiji an attractive country for international business. We are also investing considerably in the "Buy Fijian" and "Fijian Made" campaigns in 2012 to promote awareness about the many Fijian products created from our pristine environment.
We believe it is possible and necessary to be business-friendly while looking after the less fortunate. Personal empowerment and economic growth will lift all Fijians over the long-term.
Fiji is a small nation with big ideas, and a vision to enact them. We have a lot of work ahead to raise the lives and spirits of our people. However, we are convinced that by empowering Fijians, lowering our budget deficit, improving our infrastructure and increasing foreign trade and investment, we will grow our economy, and create a sustainable system that will provide for Fijians in the years ahead.
Follow Josaia Voreqe Bainimarama on Twitter: www.twitter.com/@FijiPM
Anna Lenzer: "Team Fiji" Co-opts the 99%
Soldiers are a common sight when employees try to stand up for their rights to union representation. Union leaders Felix Anthony and Daniel Urai have been subjected to harassment, arrest, intimidation and even physical assault simply for standing up for workers’ rights.
Last September the "emergency services" decree stripped away virtually all the rights of workers in the public sector, airlines, banks, telecoms, broadcast, utilities and any other company which Commodore Bainimarama declares is “essential”.
Workers can theoretically go on strike, but only with the written approval of the Commodore, who also has the power to declare any public meeting illegal.
The regime will do all it can to stop reports coming out of the island paradise, a recent delegation of Australian and New Zealand union leaders was detained on arrival at the airport and deported on the next flight, depriving them of the chance to take the Commodore up on his offer of dialogue with those who disagree with him.
Since Commodore Bainimarama seized power in a 2006 coup, Fiji has been sliding ever closer to absolute dictatorship, and no matter how much the regime invests in public relations, that simple fact remains.
Sharan Burrow
General Secretary, International Trade Union Confederation
Vanessa
Source:
http://devpolicy.org/fiji-budget-2012-an-overview/
"We believe it is possible and necessary to be business-friendly while looking after the less fortunate. Personal empowerment and economic growth will lift all Fijians over the long-term."
Nice to see someone who understands that lowering taxes on businesses, not raising them, is good for the 99%.
Perhaps you are open to people moving to your country from the United States? I would certainly like to partake in a country who cares about it's citizens rather than just the few wealthy.
Coup in 2000 to replace corrupt government.
And -
Coup in 2006 to replace corrupt government.
The world is full of high-minded promises from its respective rulers, governors. I live in the USA and can assure you that this country and all others made aware of the efficacy of Fiji's retooliing efforts, would be shamed into emulation in some form.
I encourage you and your fellow citizens to reach forward to a brighter future while grounded from history's lessons.
Here is an unsolicited word of advice, make every effort to be transparent and humble. Keep the rest of the world abreast of the country's status. Invite regular foreign appraisals of the current affairs and conditions.
Fiji can be at the genesis of a spectacular future and therefore a micro model of what is possible elsewhere.
These reforms come along with other initiatives to improve government operations, including raises for public sector employees, accompanied by a performance-based management system that will be introduced for the civil service. Individual civil servants will be assessed and, beginning in 2013, they will be paid based on individual performance—not just on length of service. This is just another way we are ensuring Government recruits and retains talented people, while ensuring responsibility and efficient service delivery.
And of course Fiji is also on a path to a new system of governance—as outlined in our “Strategic Framework for Change” with elections slated for 2014. No later than September 2012 our country will commence work on a new constitution that will establish a fully representative government that is founded on an electoral system that guarantees equal suffrage. As I mentioned above, for the first time in Fiji’s history, we will have a truly democratic system: one person, one vote, one value.
In the meantime, my Government remains focused on empowering Fijians, modernizing Fiji, and growing our economy.
Best regards, PM
please be aware that a working model of efficiency will have many foes and it would serve Fiji well to be most aware and watchful of even the most passive of sabotage. My intent is not to be alarmist but a realist. Go forward with cautious confidence.
Regards