Consumer Council exposes price hikes ahead of VAT reduction

As Fijians look forward to relief from the upcoming VAT reduction, set to decrease from 15 to 12.5 percent this Friday, serious concerns have emerged following the discovery of unjustified price hikes by some eateries.

The Consumer Council of Fiji says that they have uncovered evidence suggesting businesses are pre-emptively raising prices to offset the tax cut, effectively depriving consumers of the intended financial benefits.

They say that during 530 market surveillance before and after the National Budget, they found a troubling trend, where some food outlets had raised prices in recent weeks to cancel out the benefit of the upcoming VAT cut.

CEO Seema Shandil says by raising prices now, these eateries can later claim to have passed on savings while keeping actual costs the same or even higher, undermining the intended financial relief for consumers.

Shandil say this behaviour is not only unethical but directly sabotages the government’s policy intent to alleviate the cost-of-living burden for ordinary Fijians.

She says notable examples include a fast-food outlet’s curry meal rising from $2 to $3, a Suva restaurant’s two-person meal increasing from $49.95 to $54 and menu hikes at multiple food courts.

She further says that a prominent restaurant chain also raised its king-sized pizza price to $56.30, while a major supermarket’s chicken pie now costs $9.95 from $7.95.

The Council urges transparency and accountability to ensure the VAT reduction delivers its promised advantages to the public.

Shandil also highlighted that they are extremely concerned that such behaviour not only rips off consumers but also erodes public trust in the fairness of the market.

The Council notes that food establishments are often harder to monitor due to variable pricing and the ease with which cost justifications, such as ingredient or labour costs, can be used to mask unjustified increases.

When traders manipulate prices to suit their own interests, especially under the guise of “justified” cost increases, it sends a clear message that consumer welfare is secondary.

The Council firmly believes that ethical conduct and transparency must be upheld, particularly during times when government initiatives are aimed at easing the cost-of-living burden for ordinary Fijians.

The CEO adds that consumers are the backbone of every business, and treating them fairly through transparent and ethical pricing is vital, not only for maintaining customer loyalty and brand integrity but also for upholding the principles of a just and fair marketplace.

Consumers are also encouraged to retain receipts, compare past and present prices of the same item or meal, if a price increase is suspected, consumers should keep both the old and new receipts or take photos showing the change and report the matter to the Consumer Council of Fiji by calling toll-free 155 or emailing complaints@consumersfiji.org.