11 Jan 2007

Fiji's finance minister is calls for VAT reduction to 12%

11:39 am on 11 January 2007

The Value Added Tax imposed on almost all goods and services in Fiji is to be further reduced by the new military appointed administration.

The deposed Qarase government had increased Value Added Tax from 12.5% to 15% when it announced the 2007 national budget in November.

When the military overthrew the Qarase government, it immediately announced that the planned 20% increase would not go ahead.

Now the newly appointed minister of finance in the interim administration, Mahendra Chaudhry, says he will recommend to the new cabinet that the Value Added Tax be further reduced to 12%.

Mr Chaudhry says a list of recommendations concerning finance matters would be drawn up for consideration by the new cabinet at its first meeting next Tuesday.

He says his first major task will be to draw up the next national budget with the aim of reducing poverty and reviving the economy.