Finance Minister Aiyaz Sayed-Khaiyum says the VAT reduction will benefit everyone despite the inclusion of VAT on some basic items.
VAT will be reduced from 15% to 9% from January 1st 2016.
However, VAT exemptions for the list of basic items has been removed which means VAT will also be imposed on tinned fish, powdered milk, cooking oil, flour, tea, kerosene, prescribed medicine and repeat medicines.
The zero VAT rating for the first $30 of the FEA bill will also be removed meaning that VAT will now apply on that amount.
No VAT will be charged for items like hearing aids and wheelchairs.
Sayed-Khaiyum also says the Ministry of Civil Service will be fundamentally responsible for the overall strategy regarding civil service in Fiji.
A Ministry of Civil Service will be established on January 1st next year.
It has been confirmed that PSC staff will be redeployed to other ministries.
Positions for the Ministry of Civil Service will be advertised soon.
