Consumers to pay 15% VAT on FEA bills for December 2010

Consumers will have to pay the increased 15% VAT on their electricity bills for the month of December 2010.

Fijivillage News received a number of complaints from listeners who were outraged after discovering that their FEA bill for December incorporated the 15% Vat which came into effect on January 1st this year.

We contacted FIRCA and the FEA on the matter earlier this week.

Following our queries a joint statement was issued from the Fiji Electricity Authority and the Fiji Islands Revenue and Customs Authority yesterday which said that all electricity bills, except for Maximum Demand Customers, issued by FEA during the month of January 2011 will be for electricity use in December 2010 partially as well as for some consumption in January this year.

The statement said it has been agreed by FIRCA that bills processed as at January 1st 2011 will incorporate a 15% VAT instead to avoid the complex change in the FEA billing system that needs to be implemented for a couple of months.

It said the additional charge of 2.5% VAT for the month of December will now be credited to the accounts of FEA customers in their February 2011 bills accordingly.

This means that the additional 2.5 percent VAT charged on the December bills will be deducted from the February bills for all affected consumers.

Story by: Roneel Lal