Government is not considering reducing the fuel tax levy.
In response to questions on whether the Government would consider reducing the fuel tax levy in light of rising global fuel prices driven by ongoing tensions in the Middle East, Minister for Finance, Esrom Immanuel says the Government has already removed the full $0.20 per litre duty on diesel for all bus companies.
Immanuel says other sectors, including the entire land shipping industry, also receive a $0.20 per litre duty reduction on diesel.
He says kerosene and premix are already zero-rated for duty, with kerosene sales at zero value.
Immanuel says the Government has implemented targeted support measures for the bus industry and Energy Fiji Limited (EFL) to cushion the impact of rising global fuel prices and maintain essential services.
He stressed that fuel-related taxes remain a significant source of Government revenue, which finances critical public services including healthcare, education, social welfare, infrastructure and national security.
He says a complete removal of fuel duty across the board would result in a revenue loss of more than $150 million and would materially weaken the Government’s capacity to continue delivering essential services and supporting vulnerable communities.
Immanuel says that instead of a blanket reduction, the Government has adopted a balanced, targeted and fiscally responsible approach to managing fuel-related pressures.
