Business

Freight costs affect price of spare parts

June 26, 2022 1:10 pm

The cost of vehicle spare parts has been affected by increasing international freight costs.

This has been highlighted by the Acting Prime Minister and Minister for Economy Aiyaz Sayed-Khaiyum.

A student from Fiji National University told the Minister during a budget consultation that it is challenging to obtain spare parts at lower costs.

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The Minister in his response, says while freight costs are a major issue, traders are not passing down reduced duties.

“We have reduced the duties significantly on spare parts. Unfortunately, lots of businesses in Fiji do not pass on the duty reduction. A lot of things in Fiji are on five percent duty now, they used to be 32 percent. They are now only five percent, so whether that difference of 27 percent has been passed on to the consumer is another issue.”

Sayed-Khaiyum says there have been discussions with shipping companies and they expect freight costs to come down by September.

He adds that there are people who are constantly going around to ensure fair trade.