3 Jan 2011

VAT up by 2.5% in Fiji, but special eight-week tax holiday for school stationery

11:40 am on 3 January 2011

The prices of all goods and services has increased in Fiji with a rise in the Value Added Tax on goods and services coming into effect.

From the start of the month VAT increased from 12.5% to 15%

Fiji Islands Revenue and Customs Authority CHief Executive, Jitoko Tikolevu told Fiji Village the VAT increase will apply to all goods and services except certain basic food items that are zero rated.

However in his New Year message, Fiji's interim Prime Minister, Frank Bainimarama, said school stationery would be VAT free for eight weeks to help parents prepare for the new school year.

Government is expected to collect close to 80 million dollars in revenue from the VAT increase.