16 traders face prosecution for failing to pass on VAT reductions

The Fijian Competition and Consumer Commission (FCCC) has warned 16 traders for prosecution as part of its nationwide enforcement drive to ensure the benefits of VAT and duty reductions are passed on to consumers.

The enforcement is being carried out under the Price Monitoring and Enforcement Taskforce (PMET), following the Government’s 2025–2026 National Budget announcement. The joint initiative involves FCCC, the Ministry of Finance, the Fiji Revenue and Customs Service, and the Consumer Council of Fiji.

To date, 590 traders have been flagged for verification and investigation, with 184 confirmed compliant, 179 issued with Requisition for Information Notices (RFINs), and 16 warned for prosecution.

FCCC Chief Executive Officer Senikavika Jiuta reaffirmed the Commission’s commitment to ensuring ordinary Fijians benefit directly from tax and duty cuts.

“When Government reduces taxes or duties, it is to assist ordinary Fijians with their cost of living,” she said.
“FCCC’s mandate is to ensure that these benefits are not absorbed by traders but are passed directly to consumers. We are not hesitating to take strong action against those who defy these expectations.”

She further reminded traders that compliance is a legal requirement, not a choice.

“Every trader must play their part in ensuring a fair and transparent marketplace. Compliance is not optional; it is a legal obligation,” Ms Jiuta said.

FCCC’s monitoring found that while most businesses have adjusted to the new 12.5 percent VAT rate, discrepancies remain among a few. Surveys conducted between June and October across 18 sectors — including food, hardware, pharmaceuticals, and automotive — show price drops for key items like chicken portions, corned lamb, and noodles, though inconsistencies persist.

FCCC’s verification and enforcement exercises will continue through December 2025, and consumers are urged to report unfair practices or pricing breaches via phone (8921991) or Facebook message.