Finance Minister issues stern warning on VAT price manipulation

The Deputy Prime Minister and Minister for Finance, Professor Biman Prasad has issued a stern message to businesses across the country, urging them to comply with the government’s new VAT reduction measures effective from today.

Professor Prasad emphasised that when the government introduces policies aimed at providing relief to the general public, it is not only a moral responsibility but also a clear obligation for businesses to ensure that those benefits reach consumers.

He say the VAT rate change from 15 percent to 12.5 percent must be reflected in prices without delay or manipulation.

The Finance Minister says to ensure compliance, a multi-agency task force has been established, involving the Fiji Revenue and Customs Service, the Consumer Council of Fiji, the Fijian Competition and Consumer Commission, and the Ministry of Finance.

He says the Consumer Council has already flagged reports of some businesses attempting to raise prices despite the VAT reduction.

He adds that businesses can take it as a warning that the government will hold them accountable for their actions and will ensure that Fijian families receive the intended benefits.

The VAT reduction is part of a broader package of measures outlined in the 2025–2026 National Budget, aimed at easing the cost of living and stimulating economic activity.