Retailers work with FCCC to manage VAT transition

Suva Retailers Association President Jitesh Patel says they are working with the Fijian Competition and Consumer Commission to manage the transition to the new VAT, as many shops have large inventories, making it challenging to adjust prices accordingly.

While speaking to fijivillage News, Patel says they are coordinating with the FCCC to find the best way to serve customers during this change.

He says the business community is happy because most of the monetary policies have continued as before, and the tariffs and other measures have remained consistent with previous budgets.

When questioned about some unscrupulous businesses not passing on the benefits of the VAT reduction, Patel says the issue must be considered from two perspectives, as many businesses have faced high operating costs—particularly with wages having increased by about 60 percent over the past two years.

Patel says businesses have been mindful of these factors and have tried to keep prices from rising too sharply, but it remains a delicate balance.

He adds that if a business cannot decrease prices, it must explain the reasons to the FCCC, which will then decide whether to approve the request.

When contacted by fijivillage News, FCCC says for businesses that may have many products and are having difficulty in changing the price displays on shelves to show reductions as a result of the VAT decrease, they are required to make submissions.

FCCC says they will provide a letter to the business making a submission which will have detailed instructions for any flexibility allowed on a case by case basis.

However, they stress that all price changes resulting from the VAT decrease must be reflected at the point of sale from Friday.

FCCC CEO Senikavika Jiuta has stressed that businesses must adjust their prices accurately and ensure that these benefits flow directly to people, in line with the intention of the budget.

She warns that any attempt to withhold these benefits or exploit consumers during this adjustment period—through unethical practices such as overpricing—will not be tolerated.

VAT on non-zero rated items will decrease from 15 percent to 12.5 percent from tomorrow.