12 Dec 2006

Cost of living adjustment in Fiji to be paid out, while VAT rise will not go ahead

6:08 pm on 12 December 2006

Fiji's military regime is continuing with its so-called clean up of government.

This afternoon, the interim Prime Minister also announced several financial moves, which are likely to gain popular support.

From Suva, Philippa Tolley has more:

"Fiji's military regime has confirmed that the cost of living increase for public servants, agreed to by the government before it was ousted from power, will still be paid. And the interim Prime Minister, Dr Jona Senilagakali, says the military regime won't increase Value Added tax as was planned for in the budget. The increase to 15 per cent was approved by the lower house before the coup, but did not have time to go to the Senate. The move to increase the tax had attracted a great deal of opposition especially from the Labour party and threatened to split the multi party cabinet under the Qarase administration. During the day, a range of senior civil servants have been sacked. One military spokesman said these people needed to go because they weren't wanted anymore."