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Hefty Fines For Non-Compliant

Another seven businesses have been issued with the Value Added Tax (VAT) Infringement Notices for not reducing prices following the VAT rate reduction from 15 per cent to nine per
20 Feb 2016 08:37
Hefty Fines For Non-Compliant
Fiji Revenue And Customs Authority chief executive VISVANATH DAS

Another seven businesses have been issued with the Value Added Tax (VAT) Infringement Notices for not reducing prices following the VAT rate reduction from 15 per cent to nine per cent.

These businesses include four very prominent supermarkets, another bookshop, a restaurant and a shipping company.

The supermarkets, bookshop and the shipping company have been fined $50,000 while the restaurant was issued a fine of $10,000.

FRCA acting chief executive Visvanath Das said to date the authority has received 44 such complaints regarding unethical practices by businesses of which 12 have been fined while 31 cases are still being investigated.

Mr. Das added: “It is unfortunate to see that some prominent and reputable businesses are involved in non-compliant behavior and are not passing the six per cent reduction in VAT to consumers. We urge all business to comply with tax laws and regulations.

He further confirmed: “Although the twelve businesses issued with infringement notices still have time to pay which is within 21 days of the notice, four have paid the fines and do not want court proceedings initiated.”

The Price Surveillance Committee comprising of officers from FRCA, Commerce Commission of Fiji and the Consumer Council of Fiji are carrying out surveillance work and gathering information and complaints on deceitful retailers who have not revised their prices following reduction in VAT.

This also includes retailers who have decreased prices however it is not proportionate to the 6 per cent decrease. Businesses and consumers are urged to come forward if they come across transactions where VAT reduction has not been passed to factor the six per cent reduction. They can report to Consumer Council, Commerce Commission or FRCA.

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