Parliament passed the Water Resource Tax (budget amendment) Bill 2023 this morning.

During the debate, opposition Member of Parliament Premila Kumar says the water bottling companies are actually getting away with the removal of corporate tax and an increase in the threshold for water extraction.

While speaking on the Water Resource Tax (budget amendment) Bill 2023, Kumar says none of the companies will pay 25 percent corporate tax, and their earnings will also increase due to the change in the threshold.

Kumar Claims that bigger companies like Fiji Water, owned by billionaires, paid eighteen cents per litre for water extracted from over 3.5 million litres, and now they will pay 19.5 cents per litre if they extract more than 10 million litres per month.

Therefore, she adds, this will lead to further revenue losses due to the threshold change.

“But the question is for established companies that have already enjoyed all this concession and then it will end up in revenue loss while we’re here. Revenue is so important for this country. Let consumers pay 15 percent. Let MSMEs pay percent corporate tax, but let bigger companies like Fiji Water getaway. How is this fair?”

Meanwhile, Finance Minister Professor Biman Prasad says they are increasing the water resource tax from 18 percent to 19.5 percent, which is actually going to increase the revenue that the government will get.

“The figures are all wrong. Honourable Kumar was saying that extraction for the top tier was increased from 3.5 million litres to 10 million litres. It was always 10 million litres. It was always 10 million litres. As I explained to them, Mr. Speaker, there is absolutely no revenue loss for the government in what we have done. In fact, what we have done, Mr. Speaker, is going to get us more revenue.”

Minister for Tourism Viliame Gavoka says the country is earning more income out of this, and it’s 20 percent more than what they are currently collecting.

Gavoka says Fiji Water gives Fiji a profile in the world that we need to protect.