Fiji drops VAT to 9%

Fiji has announced a proposal to reduce its VAT rate from 15% to 9% in 2016.  The 15% rate was set in January 2011.

There would be an increase in the Service Turnover Tax (STT) from 5% to 10% at the same time. This tax is levied on: hotel accommodation; restaurants and cafes; cinemas; car hire; and tour operators.  In addition, a new environmental tax is to be introduced at 6% on businesses subject to STT.