Businesses must pass down tax and duty reductions to consumers - Shandil

Consumer Council of Fiji Chief Executive Officer Seema Shandil says while businesses will benefit from various tax reforms and policy changes in the 2020/2021 National Budget, it must be passed on to consumers.

Shandil says while lucrative incentives have also been announced which will benefit Fijian consumers through employment creation, reduction in prices of household items and deferment of utility payments and loans, the council reminds businesses that the incentives directed towards them is for all Fijians.

She says we expect a huge trickle-down effect of policy changes and businesses must ensure that our hard-working Fijians reap benefits from the incentives announced.

Shandil says tax reform and policy changes such as the reduction of fiscal import excise and duties on over 1,600 items would mean businesses will be able to acquire them at a cheaper price.

She says this has to be reflected in the final prices which consumers pay.

The Consumer Council CEO says these are unprecedented times and businesses should recognise that the best way to build a resilient, vibrant local community that grows and revitalizes the economy is by ensuring that consumers benefit as consumer spending is the single most important driving force in any economy.

She also says that the 2020-2021 National Budget will serve as the blueprint to Fiji’s economic recovery.

Shandil says this is evident from the incentives directed towards the local businesses set to fuel the local economy such as the reduction in the Environment and Climate Adaptation Levy or ECAL, removal of Service Turnover Tax to scrapping of business license requirements and exemption of VAT on residential accommodation.