Second-hand vehicle sales decline

SALES of second-hand vehicles had decreased by 7.8 per cent last month; the Reserve Bank of Fiji has reported in its latest economic review.

The central bank stated that this was probably because of the increased fiscal and excise duty which came into effect from 1 January 2017 on hybrid vehicles as announced in the 2016-2017 budget last year.

In comparison with the same review in March, the central bank highlighted that increased registrations of second-hand vehicles were recorded by 0.2 per cent cumulative to February this year.

RBF, in its April review released last week, reported that aggregate demand indicators continued to be positive in the first quarter of this year.

Consumption spending rose further as new vehicle registrations increased by 25.0 per cent and new consumption lending by commercial banks increased by 9.2 per cent compared with a year ago.

The central bank however noted a decrease of 8.1 per cent in Net Value Added Tax (VAT) collections in the first two months.

This was largely due to the base effect from the higher amount of VAT collected in January 2016.

RBF also indicated a broadly upbeat investment spending in the first quarter as new investment related lending by commercial banks expanded by 65.7 per cent compared with a year ago.

Higher new loans were also registered for real estate by 104.9 per cent and building & construction by 37.1 per cent.

Domestic cement sales had also increased by 37.3 per cent on an annual basis during the quarter.

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