The Value Added Tax exemption on 21 essential consumer items will continue.

Minister for Economy, Aiyaz Sayed-Khaiyum says although this reduces the government’s revenue by $163 million annually, this initiative has helped families save money.

He adds Fiji’s consumer protection agency revealed that consumers would have used $265 to $420 more in their annual shopping bill if not for the removal of the VAT.

“This unprecedented measure has already saved consumers $15 million since its implementation on 01 April 2022 and it will $163 million over the course of the year. $163 m shaved off the top of the grocery bills and kept in the pockets of the families who need it the most.”

Sayed-Khaiyum says Fiji’s price control has prevented prices of certain items from reaching unaffordable levels.

These 21 essential items are sugar, flour, rice, canned fish, cooking oil, potato, onion, garlic, baby milk, powdered milk, liquid milk, dhal, tea, salt, soap, soap powder, toilet paper, sanitary pads, toothpaste, kerosene, and cooking gas.