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PRESS STATEMENT

Clarification on Price Increase Post-Budget Announcement

The Consumer Council of Fiji is reminding traders to be honest and sell old stock at the old price as duty on old stock was already paid before the budget announcement on 21st November 2014.

This reminder comes after the Council’s three regional offices were flooded with queries from the consumers who experienced immediate price increases on goods following the budget announcement last Friday.

The price increases on all imported alcohol, tobacco and cigarettes by 10 % after the 2015 national budget announcement comes into effect when there is delivery of new stock after the budget announcement. If a retailer is selling these products from his old stock then it must be sold at the old retail price.

According to [Fiji Revenue & Customs Authority] Public Circular No. 9 of 2014, 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 20th November, 2014. The mentioned time and date also applies to goods relating to changes to the Excise Act.

The duty rates shall also apply for goods removed for home consumption fromWarehouses, Inland Freight Stations (IFS) (un-cleared cargo), Cargo Freight Station (CFS) Tax Free Factories / Tax Free Zones, Duty Suspension Scheme firms, Excise factories and all un-cleared cargo after midnight, Thursday 20th November, 2014.

The new price only applies when the retailer pays new rate of duty on the new stock of these items arriving for the first time in Fiji by ship or aircraft, after midnight, Thursday 20th November, 2014.

In other words, all un-cleared cargo after midnight, Thursday, 20th November, 2014 will be charged new duty rate by FRCA which will be passed on to consumers as “increase in price”.
For more information you can visit FRCAs website- http://www.frca.org.fj/wp-content/uploads/2014/11/Custom-Budget-Circular.pdf

The same applies to other luxury items which had a duty increase of 32 %. These items are: perfumes, cosmetics, shaving, or after shave preparations, Camera’s and Camcorders, sunglass, binoculars, video & electronic games, watches, iPods, MP3 and MP4 players and Jewellery.

Retailers must uphold business ethics and fair trade practice and do the right thing and not hoodwink the consumers by increasing the price of old stock where duty was already paid before the budget announcement.