The Fiji Commerce and Employers Federation has called for reductions in VAT for hybrid vehicles, corporate tax and departure tax as part of its submission for the 2026/2027 National Budget.
FCEF is proposing that the VAT rate for hybrid vehicles be reduced from 15 percent to 10 percent, saying a 5 percent reduction would help lower the cost of living and reduce prices for consumers.
The federation says lower prices would encourage greater consumer spending, which in turn could contribute to higher government revenue through increased economic activity.
FCEF has also proposed reducing the corporate tax rate from 25 percent to 20 percent to help catalyse economic growth and diversify the economy.
FCEF says a more attractive corporate tax rate would encourage new foreign investment, stimulate business activity, create employment opportunities and increase incomes.
It has also recommended that any revised corporate tax rate be fixed for at least five years to provide certainty for investors.
FCEF is further calling for a reduction in departure tax from $200 to $100.
FCEF says the move would help promote Fiji as a more attractive tourism destination, particularly at a time when rising fuel prices are expected to increase airfares.
It says attracting more visitors would generate additional revenue for the country and support the growth of the tourism sector.
The 2026/2027 National Budget will be tabled in Parliament at 10am tomorrow.
