New budget brings long-overdue relief to Fijian families – Consumer Council

The Consumer Council of Fiji has welcomed the 2025/2026 National Budget, saying it introduces several measures to ease the cost of living and brings long-overdue relief to Fijian families.

Consumer Council of Fiji CEO Seema Shandil says a key highlight of the budget is the reduction of VAT from 15 to 12.5% — a move expected to ease the burden on consumers, particularly in relation to essential goods and services, which have become increasingly unaffordable in recent years.

She says the Council has long advocated for a more consumer-friendly tax regime, and this policy shift marks a significant step forward, however, she notes that the real work begins now.

Shandil says in the past, when VAT was increased, retailers were quick to pass on the additional costs to consumers but now that taxes have been reduced, the Council wants to ensure those savings are passed on to the public, rather than absorbed as extra profit.

Shandil is urging all businesses to ensure that cost reductions are passed on to consumers, and warns that enforcement agencies will not hesitate to take action against those who fail to comply.

The CEO adds that the budget also includes a reduction in import duties on a range of essential food items.

She says zero duties will continue to apply on other everyday essentials, and these changes have the potential to significantly improve food affordability and nutrition for Fijian households.

Shandil further says a 10 percent bus fare subsidy has been introduced, offering immediate cost relief for commuters—particularly low-income earners and daily travellers.

She says this will increase disposable income, allowing families to spend more on food, utilities, and other essentials, while also helping to stimulate economic activity.

Consumers with concerns are encouraged to contact the Council directly by calling 155.