NATION

Traders Warned: Don’t Rip People Off After Budget

The Consumer Council of Fiji is urging traders to uphold business ethics and do the right thing by not increasing the price of goods from the old stock following the
11 Nov 2015 10:27
Traders Warned: Don’t Rip People Off After Budget
Premila Kumar

The Consumer Council of Fiji is urging traders to uphold business ethics and do the right thing by not increasing the price of goods from the old stock following the 2016 National Budget announcement last Friday.
The council have recently received numerous phone calls with consumers expressing concern over what they describe as an overnight price hike of certain goods particularly; cigarettes, alcohol or liquor and sugar-sweetened drinks following the budget announcement.
A public circular released by the Fiji Revenue and Customs Authority states: “The duty rates and other changes relating to the Customs Tariff Act shall apply to goods arriving for the first time in Fiji by ship or aircraft , after midnight, Thursday November 5. The mentioned time and date also applies to goods relating to changes to Excise Act.”
The price increase on cigarettes and alcohol by 18.5 per cent (12.5 per cent excise duty and further six per cent health levy) comes into effect when there is delivery of new stock after the 2016 Budget announcement. If retailers are selling these products from their old stock then it must be sold at the old retail price because the duty on old stock was already paid before the budget announcement on November 6, 2015.
In other words, all un cleared cargo after midnight, Thursday, November 5 will be charged new duty rate by FRCA which will be passed on to consumers as “increase in price”.
Meanwhile, the nine per cent Value Added Tax comes into effect from January 1, 2016.

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