![Minister for Economy, Aiyaz Sayed-Khaiyum. [Image: Fijian Government]](https://www.fijivillage.com/news_images/1887426157623c6006b9e2e783d712.jpg)
Good news for people as from 1st April 2022, sugar, flour, rice, canned fish, cooking oil, potatoes, onion, garlic, baby milk, powdered milk, liquid milk, dhal, tea, salt, kerosene, cooking gas, soap, soap powder, toilet paper, sanitary pads and toothpaste are all going to become VAT zero-rated.
While announcing the 2021/2022 Revised National Budget, Minister for Economy, Aiyaz Sayed-Khaiyum says in total, this reduction will send $163 million in tax revenues back to the Fijian people and alleviate the cruellest burden that the pandemic and the Russian war have placed on our people’s backs.
Sayed-Khaiyum says the government will continue to review the price of food and other essentials as time goes on, a flexible policy posture will be maintained to adapt to the current circumstances.
The Attorney General says to alleviate the sharp rise in fuel price due to the conflict in Ukraine, the Government will also remove the current 20 cents fuel tax.
He says this will cost the Government approximately $56 million.
Sayed-Khaiyum says the prices remain volatile, and they will continue to monitor global crude oil prices and the events that are affecting them, such as the war in Ukraine.
He says in the same way, should crude oil prices stabilise, they may be able to reconsider this reduction.
From 31st August 2022, fiscal duty on imported liquid milk, full-cream powdered milk, yoghurt, cheese and butter will be reduced to 5% from the current 32%.
Fiscal duty rate on lunch boxes with a thickness of 1.88mm or more and which are not manufactured locally, water bottles, wheelie bins, meat patties and chicken nuggets, both raw and cooked, will be reduced from 32% to 5%.
Import Excise of 15% will also be removed from lunch boxes, water bottles and wheelie bins.
The Attorney General has also raised VAT on 21 items to 15%.
He says the increase in VAT to 15% will cover goods and services that previously attracted ECAL, such as prescribed services, white goods and motor vehicles, and will apply to all turnover in excess of $100,000.
ECAL will be removed and replaced by the adjusted VAT rate of 15% for these items.
He says the tax on an item that carried 9% VAT and 5% ECAL would increase by only one percent.
The additional list of goods and services to be taxed at 15% VAT includes alcohol, tobacco, textiles, clothing & footwear, perfumes, jewellery, watches, stereos and sound systems and other electrical equipment, and professional services such as legal and accounting, management and consultancy, architectural and engineering, scientific research and development, advertising and market research, veterinary activities and other professional, scientific and technical activities.
