Business

Businesses prematurely increasing tax

July 7, 2023 10:05 am

The Consumer Council of Fiji has received complaints that certain traders are already subjecting consumers to increased prices, even though the taxes in question comes into effect on August 1st.

Chief Executive, Seema Shandil is urging business industries to conform to ethical and good practices and refrain from raising taxes just yet.

Shandil says as selected tax rates will increase next month, and businesses will be passing it on to customers in the form of higher prices.

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She says a consumer has reported that the price of an item increased by 9.4 percent at a prominent coffee shop soon after the budget announcement.

Upon enquiry, the customer was told that the VAT increase was the reason behind the surge in price.

Shandil adds eateries such as restaurants and coffee shops have already been charging 15% VAT pre-budget.

Hence, she says using the excuse that there has been an increase in VAT, in no way explains this sudden price hike.

The Council is warning all traders and operators to refrain from increasing prices prematurely as is normally seen previously, as it will ultimately lead to a double burden on consumers.

The Consumer Watchdog will closely monitor the market and traders adhering to the correct tax regimes.

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