Effective from 01 April 2022, zero-rated Value Added Tax (VAT) will apply on 21 basic consumer items in Fiji.
Economy Minister Aiyaz Sayed-Khaiyum made this announcement during the Revised 2021-22 Budget address in Parliament last night.
He said this will cushion the impact of higher global prices on Fijian consumers and the Government expects to lose around $163 million (US$78 million) in tax revenues from zero-rating these goods.
The 21 items are sugar, flour, rice, canned fish, cooking oil, potato, onion, garlic, baby milk, powedered milk, liquid milk, dhal, tea, salt, soap, soap powder, toilet paper, sanitary pads, toothpaste, kerosene and cooking gas.
Meanwhile, Fiji’s national minimum wage will now be $4 (US$2) an hour, Minister for Economy has announced.
The amount will be in four tranches.
“Effective from 01 April, 2022, the NMW rate will be increased from $2.68 (US$1.76) to $3.01(US$1.44) an hour,” Aiyaz Sayed-Khaiyum said.
“It will further increase to $3.34 (US$1.60) per hour on 01 July, 2022, then to $3.67 (US$175) on October 1, 2022, and finally to $4 (US$2) per hour by January 2023.
SOURCE: FIJI LIVE/FIJI TIMES/PACNEWS