The Consumer Council of Fiji has raised alarm over unjustified price hikes by some food establishments in anticipation of a decrease in the Value Added Tax (VAT) from 15% to 12.5%, set for August 1, 2025. The Council’s investigation, which included 530 market surveys conducted before and after the announcement of the 2025-2026 National Budget, revealed that several businesses have increased their prices to counter the intended tax relief.
Highlights from the findings include alarming instances such as a fast-food outlet’s curry meal increasing from $2 to $3, a restaurant meal for two now costing $54 instead of $49.95, a prominent restaurant’s pizza rising to $56.30, and a major supermarket’s chicken pie going from $7.95 to $9.95. The CEO of the Consumer Council, Seema Shandil, criticized these actions as ethical misconduct that undermines the government’s efforts to provide financial relief to Fijians. She warned that such practices not only exploit consumers but also diminish public confidence in market fairness.
The Consumer Council is calling for businesses to act responsibly by passing the VAT reduction benefits fully to consumers, emphasizing that treating consumers with fairness and transparency is crucial for maintaining brand integrity and loyalty. This concern comes amidst broader government efforts to stabilize the economy and ensure that consumers benefit from tax relief measures effectively.
This issue connects to sentiments expressed by the Nadi Chamber of Commerce and Industry, which supports the VAT reduction as a means to empower consumers and enhance their purchasing power. This reduction is part of a comprehensive strategy by the Fijian government to tackle rising living costs and improve overall economic stability. The establishment of a National Price Monitoring Taskforce, which includes the Consumer Council and other regulatory bodies, aims to enforce compliance and prevent price exploitation amid these changes.
There’s hope that these measures will ultimately foster a fair marketplace and restore public trust, providing the necessary relief to families across Fiji. The ongoing dialogue and collective action from both government and consumer watchdogs signal a commitment to addressing the high cost of living, thereby enhancing the quality of life for many Fijians.
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