The Fiji Retailers Association says the government should reconsider the Environment and Climate Adaptation Levy to make it more affordable because some of the items are essential goods.
Items charged 10% ECAL includes smartphones, air conditioning units, refrigerators, TVs, washing machines, dryers, dishwashers, electric stoves, microwaves and electric lawnmowers.
Association President Vinay Kumar says increasing VAT is going to be an issue but the government coffers have also been affected due to the non-existence of the tourism sector.
He adds that many sectors, especially the tourism sector have requested the Service Turnover Tax and the ECAL to be reconsidered.
The Association President adds that they have not made any suggestions to reduce the Corporate Tax but they have suggested a reduction in stamp duty.
Stamp duty is a tax on legal documents such as lease and tenancy agreements, sales and purchase agreement, transfer documents, mortgages, share transfer documents and transfer of second-hand vehicles.
Kumar adds they understand the government’s point of view where revenue has reduced due to COVID-19 which is no fault of theirs but the private and the public sector will need to work together to keep businesses afloat.
He says businesses need to keep their costs down but one of the major issues they are facing now is the rent they are being charged and interest rates charged by banks on business loans.
Kumar says some landlords have started charging rent they were charging previously and some have held on and are not charging as they were before.
He adds that they will only be able to know exactly how many businesses have had to shut down when they renew their business license.
Kumar adds consumer spending has become very scarce in the last 3 or 4 months as people have been spending their money on essential items only.
The 2020/2021 National Budget address will be delivered by the Minister for Economy, Aiyaz Sayed-Khaiyum at 7.30pm tonight.
