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Government needs to maintain VAT exemptions: FCOSS

June 26, 2023 4:15 pm

The government needs to maintain the value-added tax exemptions on 21 essential consumer items.

Fiji Council of Social Services Executive Director Vani Catanasiga says this as many members, particularly in the Western Division, have shared about the daily challenges they face in putting food on the table.

Catanasiga says maintaining VAT exemptions on the 21 items has provided a buffer for too many low-income households around the country.

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“Where we work with communities, we see there is a need for that to continue, particularly with communities or families that have issues with food security.”

Catanasiga says during a public consultation last month, some members also discussed the possibility of having communal farms as a cheaper and healthier alternative to buying household goods and items.

Meanwhile, Finance Minister Professor Biman Prasad hinted last week that the government could maintain VAT exemptions on the 21 basic food items.

Speaking at the Fiji Institute of Chartered Accountants Congress 2023 in Sigatoka, Prasad says there will be two rates because the government will leave zero-rating where it is and increase support for people currently on the social welfare system because they are the ones who will be hardest hit by the increases.

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.

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