Simione Tuvuki 
Prime Minister Sitiveni Rabuka says increasing Value Added Tax to 15 percent is too high, in response to the recommendations by the World Bank.
The World Bank made the recommendation in the recent Public Expenditure Review Report for Fiji, proposing an increase in VAT from nine to 15 percent and restoring VAT on the zero-rated essential items.
It says this is because multiple rates can affect government revenue.
Prime Minister Sitiveni Rabuka.
The Prime Minister says the government is yet to take a resolution on the proposal.
“I have not made my decisions, I have to look at the figures … those that are proposing that will have to come to me – what is the effect of keeping the zero-rated items and what is the effect of flat-rate items. I think 15% is too high. When we started, it was 12%, and it went down a little … but I think 15% is too high.”
The Prime Minister says the government must carry out assessments and consultations on VAT before it makes a decision on the proposal.
At the recent National Economic Summitt, the Fiscal Review Committee also recommended an increase in VAT but not to be higher than 15 percent.
Fiji’s standard VAT rate is nine percent, which is amongst the lowest in the region and third lowest amongst benchmark countries according to World Bank.
