FCCC make submission for VAT to remain zero-rated on the 21 essential items

As Fijians look forward to the National Budget announcement tonight, the Fijian Competition and Consumer Commission has made submissions for VAT to remain zero-rated on the 21 essential items however they do not expect other items to be added to the list.

CEO Joel Abraham says out of the 21 items which are VAT zero-rated, 4 items are not under price control and they are looking at whether these items need to be price controlled.

These items include toothpaste, soap, soap powder and sanitary pad.

Abraham says they are in the final stages of this review.

VAT has been zero rated for sugar, flour, rice, canned fish, cooking oil, potato, onion, garlic, baby milk, powdered milk, liquid milk, dhal, tea, salt, soap, soap powder, toilet paper, sanitary pads, toothpaste, kerosene and cooking gas.

To recoup the lost revenue from the zero rating of VAT, effective from 1st April this year, a higher VAT rate of 15 percent is now being applied on a select list of goods and services.

People are also saying they are awaiting the government’s announcement on whether VAT will remain at 15 percent for these items.

These items are air conditioners, dishwashers, dryers, electric jugs, electric lawn mowers, electric and gas stoves, hair dryers, microwaves, refrigerators and freezers, mobile phones, TVs, toasters, washing machine, passenger vehicles, alcohol and tobacco, textiles, clothing and footwear, perfume, jewellery and watches, stereo/sound systems, electrical machinery and equipment, professional, scientific and technical activities and prescribed services under ECAL.

Minister for Economy Aiyaz Sayed-Khaiyum will deliver the budget at 8 tonight. Stay with us for details on how the budget affects your pockets and your family as a whole.

We will look at the duties and taxes on goods and services that affect you and allocation of tax dollars to the different sectors as part of the provision of government services. You can also follow our coverage on our website and mobile app, fijivillage.