Traders have been cautioned to ensure they are applying the 15 per cent VAT rate accurately to the price of their goods and services.
In a media statement the Fijian Competition and Consumer Commission (FCCC) chief executive officer Joel Abraham said effective from August 1, 2023, the three VAT rates had been replaced with a simplified two VAT rate system.
The 9 per cent VAT has increased to 15 per cent while the 0 per cent VAT rate list of items has been maintained, other than the addition of prescription medicine and prescription drugs.
Mr Abraham said if a trader was unsure, they could calculate the new price by taking the original price, divide it by 1.09, then multiply it by 1.15, as follows: New Price = (Old Price/1.09) x 1.15.
“It is the responsibility of traders to ensure they are correctly applying the new VAT rates or they will be taken to task,” said Mr Abraham, adding that a joint taskforce, composed of FCCC and Fiji Revenue and Customs Services officers, is conducting surveys and inspections to ensure compliance.
“Since the budget announcement, we have conducted around 1070 surveys and inspections and are maintaining the pace, through participation of FCCC employees from all departments, not just enforcement.
“Unethical traders who are trying to unfairly profit by taking advantage of the transition should know that we’re committed to ensuring that the budget changes are accurately reflected in market prices and any non-compliance will be met with decisive action.”
Deputy Prime Minister and Minister for Trade, Co-operatives and Small and Medium Enterprises and Communications, Manoa Kamikamica said it was at the utmost interest of the Fiji Government to ensure that fair and ethical trading practices were being adhere to by traders in Fiji.
“Awareness and enforcement remains vital to protect consumers in Fiji,” he said.
The cautionary advice was issued by the FCCC after reports of some traders directly applying either an additional 15 per cent VAT or 6 per cent VAT to the existing prices.
