The Consumer Council of Fiji is expressing its concern that Hot Bread Kitchen has not adjusted prices of bread, buns, cakes and pastries to reflect the VAT reduction from 15 to 9 percent.
CEO Premila Kumar says it is understood that the price of long loaf, medium wrapped/sliced and wholemeal medium wrapped/sliced bread is determined by the Fiji Commerce Commission as these items require no VAT adjustment by individual trader since all price controlled items are VAT inclusive.
However, Kumar says besides these three products, consumers expect reduction in the prices of all types of bread, bun, pastries and biscuits as VAT has been reduced by 6% and there also has been a reduction in the prices of wheat product by an average of 5% across the board.
Kumar says the Council also found that the price of cream buns and vanilla swiss rolls have also not changed.
When contacted by Legend FM News this afternoon, the General Manager of Hot Bread Kitchen, Philip Samisoni highlighted that it’s not true that they have not adjusted their prices.
He stressed that prices of many of their products have been reduced.
Samisoni says the reason why the prices of some products have not gone down is because their price adjustment for 2016 coincided with the new VAT rate.
He says the prices of some of their bread have not been adjusted since 2013.
Samisoni adds following the implementation of the new minimum wage rate, their labour costs have increased and this is one of the reasons for the price adjustments.
