ALL tourists who buy more than $500 worth of goods while in Fiji will be able to claim the 12.5 per cent Value Added Tax back.
The scheme will come into effect from February 1 bext year.
Tourism Fiji chairman Patrick Wong said the Tourist VAT Refund Scheme would make Fiji an attractive shopping destination, similar to the heydays of the 1970's.
The scheme would initially be available for tourists departing Nadi Airport and those departing by cruise vessels from Suva.
According to the Budget, for businesses to be eligible to operate as VAT refund outlets, they would need to register with the Fiji Islands Revenue and Customs Authority.
Alongside zero duty rating on various items targeted at tourists, the Tourist VAT Refund Scheme was expected to position Fiji as a shopping hub.
The scheme also aims to encourage producers to target their goods and skills at the tourism sector, for example, through tailoring of suits for foreigners.
The scheme has been welcomed by the Fiji Chamber of Commerce, with its president Swani Maharaj saying such provisions would encourage tourists to spend more in Fiji.
He said the scheme was similar to that employed by Australia and New Zealand.
He said the scheme would benefit tourism and was also the fastest way to get foreign exchange. Similar sentiments were echoed by Nadi chamber president Dr Ram Raju who said it would increase trade and also tourism.
