The 500 percent increase in the Water Resources Tax (WRT) will devastate small water bottlers in Fiji, says Altaaf Jamal, CEO of Aqua Pacific Natural Artesian Water. He expressed concerns that this significant hike would present a substantial burden on their operations.
“This increase starkly contradicts the agreement made between the Fijian Government and the water bottling industry just a year ago,” Jamal stated. “The current one-cent water extraction tax already imposes a heavy burden on small bottlers, making it difficult to compete in both local and global markets. With the new increase, Fiji now possesses the world’s highest water resource tax at five cents, making it nearly impossible for small bottlers to stay competitive.”
Jamal highlighted that while a seven-year corporate tax holiday was introduced for all players in the water bottling industry, the Government has continually increased other taxes to offset this holiday. “This includes the latest 500 percent increase in WRT for up to 10 million liters of water drawn,” he explained.
He pointed out the disparity in tax treatment, which has created a significant competitive imbalance. Smaller bottlers face increased operational costs while larger players remain unaffected. Jamal mentioned that they had a $10 million project planned for the coming year. “Now we feel uncertain and have put our investment programs on hold. This increasing tax burden and lack of predictability in government policies are stifling our growth and our ability to compete globally. Despite investing millions back into the Fijian economy and planning to penetrate wider global markets, these smaller players face mounting challenges due to the increased taxes.”