It is tough for many retailers to implement 3 VAT systems – Suva Retailers Association

Suva Retailers Association President Jitesh Patel says it is tough for many retailers to implement the three VAT systems from 1st April as some of the systems are not ready yet and the time-frame is very short.

Patel says they understand where the Government is coming from as they want the reduction of VAT from 9 to 0 percent on 21 items to be passed on to the consumers immediately.

He says the retailers want to follow this however the time-frame is an issue.

From this Friday, goods and services will attract VAT in three categories which includes zero, nine and fifteen percent.

Patel says they have spoken to the Fijian Competition and Consumer Commission who also understand that many products have attracted price changes and the Commission will be releasing details regarding the different categories of items.

He says they will work with the FCCC and the Fiji Revenue Customs Service to ensure there is a smooth transition and retailers are not penalised.

Patel also confirms from 1st April, there will be price increases on old stock if the items fall in the 15 percent VAT category.