The Consumer Council of Fiji has reported concerning price increases among food businesses right before the reduction of Value Added Tax (VAT) from 15% to 12.5%, effective today. Following an investigation of over 530 establishments, the Council found that many restaurants and supermarkets have unfairly raised their prices, negating the tax relief intended for consumers.
Council CEO Seema Shandil noted examples such as the price of a curry meal at a prominent restaurant jumping from $2 to $3, and the cost of chicken pie at a major supermarket increasing by $2. Such actions, she explained, seem aimed at offsetting the savings consumers should receive from the VAT decrease. Shandil emphasized the need for fair pricing, stressing that consumers are critical to business success.
Finance Minister Professor Biman Prasad had previously issued warnings against such manipulative pricing practices, highlighting the importance of adhering to the revised VAT rate. In response to the unethical price hikes, the Consumer Council plans to continue monitoring prices, ensuring that consumers benefit as intended from the VAT cut.
This situation reflects broader challenges within the Fijian economy, particularly concerning price manipulation amidst rising living costs. Prominent regulatory bodies are collaborating through the establishment of a National Price Monitoring Taskforce to promote market fairness and protect consumers.
Encouragingly, these developments indicate a commitment from both the government and consumer advocates to ensure that the VAT reduction genuinely benefits the public, fostering hope for more equitable and transparent business practices in the future.
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