The president of the Lautoka Market Vendors Association, Filomena O’Neil, is urging the government to reconsider its proposal to amend penalties for businesses. O’Neil expressed concern over the Fiji Commerce and Employers Federation’s warnings that micro, small, and medium enterprises (MSMEs) would be most negatively impacted by the suggested maximum fine of $500,000 and a potential prison sentence of up to 20 years.
O’Neil emphasized that many MSMEs are operated by rural residents and serve as their primary source of income. She warned that such heavy fines could devastate these businesses and discourage their growth. She questioned the incentive for individuals to start businesses under the threat of such severe penalties and called for further discussions that include MSME representation in the review process.
Similarly, Ilisapeci Viriki, secretary of the Suva Market Vendors Association, argued that penalties should be tailored to the income levels of each business and highlighted the need for fair treatment between larger companies and MSMEs.
Meanwhile, the Suva Chamber of Commerce and Industries indicated it would review the proposed legislation before issuing any public comments. President Jitesh Patel mentioned that he has yet to see the actual document but acknowledges the concerns raised by the FCEF.
Minister for Trade, Cooperatives, SMEs, and Communications, Manoa Kamikamica, currently on an official trip to Australia, acknowledged the concerns and noted plans to meet with FCEF upon his return to further discuss these issues.
The Ministry of Trade highlighted that the sector contributes over 18 percent to the national GDP and employs around 60 percent of Fiji’s workforce. Before the COVID-19 pandemic, there were about 29,000 MSMEs registered with the Fiji Revenue and Customs Service, generating nearly $380 million in tax revenue.