As Fijians eagerly await the announcement of the national budget tonight, the Fiji Competition and Consumer Commission has made proposals to keep VAT zero-rated on 21 essential items, but they do not expect other items to be added to the list.

CEO Joel Abraham says of the 21 items that are VAT free, 4 items are not under price control and they are reviewing whether these items should be price controlled.

These items include toothpaste, soap, soap powder, and a sanitary napkin.

Abraham says they are in the final stages of this review.

VAT has been zero-rated for sugar, flour, rice, canned fish, cooking oil, potato, onion, garlic, baby milk, milk powder, liquid milk, dhal, tea, salt, soap, soap powder, toilet paper, sanitary napkins, toothpaste, kerosene and cooking gas.

To recover revenue lost from the zero rate of VAT, effective April 1 this year, a higher VAT rate of 15% is now applied to a restricted list of goods and services.

People also say they are waiting for the government’s announcement on whether VAT will remain at 15% for these items.

These items are air conditioners, dishwashers, clothes dryers, electric pitchers, electric lawn mowers, electric and gas stoves, hair dryers, microwaves, refrigerators and freezers, mobile phones, televisions, toasters, washing machines, passenger vehicles, alcohol and tobacco, textiles, clothing and footwear, perfumes, jewelry and watches, stereo/sound systems, electrical machinery and equipment , professional, scientific and technical activities and services prescribed by ECAL.

Economy Minister Aiyaz Sayed-Khaiyum will present the budget at 8 p.m. tonight. Stick with us for more details on how budget affects your pockets and your family as a whole.

We will look at the duties and taxes on goods and services that affect you and the allocation of taxpayers’ money to different sectors in the delivery of government services. You can also follow our coverage on our website and mobile app, fijivillage.

Deeper coverage of the national budget 2022 – 2023