VAT cut to 12.5% now in effect, says Finance Minister

Minister Prasad warned businesses saying no manipulation or unjustified pricing will be tolerated.

Thursday 31 July 2025 | 23:00

Biman_Prasad

Deputy Prime Minister and Minister for Finance Biman Prasad.

Parliament of Fiji

The reduction of Value Added Tax (VAT) from 15 per cent to 12.5 per cent officially takes effect today, and the public is being assured that the change must be reflected in all prices without delay.

Finance Minister Professor Biman Prasad issued a firm warning to businesses this morning, saying no manipulation or unjustified pricing will be tolerated.

“There is no excuse,” Professor Prasad said.

"The VAT reduction must be passed on to consumers immediately.”

The Finance Ministry, alongside the Fijian Competition and Consumer Commission (FCCC), is expected to monitor compliance closely in the coming days.



News you can trust:

This story was verified by multiple sources
This story was fact-checked

Explore more on these topics