FRCS and FCCC Collaborate to Assist Businesses and Consumers with the Budget Changes


The Revised 2021/2022 National Budget announced on 24 March 2022 incorporated a number of policies that provides significant relief to the ordinary Fijians in the wake of inflationary pressure induced by the prolonged impact of the pandemic, disruptions in global supply chain and rising freight costs.

For these polices to achieve their desired outcome, correct administration is extremely critical.  In a bid to clarify any ambiguity around the new policies and to guarantee a seamless transition, the Fiji Revenue and Customs Service (FRCS) in collaboration with the Fijian Competition and Consumer Commission (FCCC) wishes to provide additional information supplementing the policies as well as other measures that businesses and individuals need to be aware of.

FRCS CEO Mark Dixon has welcomed the collaboration. “This budget requires a “Team Fiji” approach where Government departments are working together with industry and businesses to implement the budget outcomes in a timely and efficient manner.  We understand the transition may take a bit of time, for some businesses, and our aim is to help every business to achieve compliance, so please reach out for assistance from either FRCS or FCCC”.

Dixon and his FRCS team were joined by FCCC at a very positive and constructive meeting of the Suva Retailers Association, last night, where all participants discussed clarification of the VAT changes in a positive exchange, focused on working together to resolve any technical implementation issues.

To provide immediate reduction in price, effective from 1 April 2022, VAT on 21 essential items will be zero rated. Alternatively, to maintain revenue adequacy and efficiency in tax collection, VAT on 21 goods and services was raised to 15%. The listing below provides further breakdown of the goods and services and its correct application of VAT. Similarly, it will also assist consumers in ascertaining the correct VAT rates charged on the products or services they acquire.

Furthermore, FCCC CEO Joel Abraham calls on traders to ensure that prices of these all items are reflective of the VAT changes and are displayed and indicated in reasonably visible ways for consumers. He has also urged consumers to request for receipts when purchasing any product. Traders are also urged to seek assistance from FCCC should they require any further clarification pertaining to the FCCC Act 2010.

The listing below provides further breakdown of the goods and services and its correct application of VAT.


VAT Zero Rated Products






Baby Milk

Includes products such as Lactogen, SMA, S26, Farley’s, etc.


Canned Fish

All kinds of canned fish such as mackerel, tuna, sardines, salmon, anchovies, etc.


Cooking Gas

All cooking gas sold in cylinders


Cooking Oil

Includes all edible vegetable oil products such as soya bean oil, canola oil, olive oil, coconut oil, mustard oil and other vegetable oil.



These also include all types of dhal such as split peas, toor dhal, moong dhal, urdi, etc. It also includes other dried leguminous vegetables such as peas, chickpeas, moong, kidney beans, cow peas, etc. The category excludes dhal/ lentils in powdered form(besan/pea flour) or packaged in a can.



Includes flour made out of wheat only such as normal flour, sharp and whole meal / roti flour and excludes rice flour, corn flour, pea flour, etc.



Includes only common fresh garlic and excludes all other forms such as dried, powdered, sliced, frozen, processed and packed, etc.





Liquid Milk

Includes all types of dairy liquid milk whether full cream or low fat. This category only includes dairy milk and excludes nondairy milk such has almond milk, soy milk and milk from other vegetables


Onions and shallots

Includes all types of onion but excludes onion in other forms such as powdered, dried, or processed and packed.



Includes all types of potatoes in raw form including baby potatoes and washed potatoes and excludes potatoes in processed form such as French fries, wedges, hash brown, etc.


Powdered Milk

Includes all types of powdered milk including full cream and low fat and excludes products such as condensed milk.



Includes all types of rice including basmati, jasmine, long grain rice, brown rice, etc.



Includes normal salt and excludes products such as monosodium  glutamate (MSG).


Sanitary Pads

Includes all types of sanitary towels (pads), tampons, etc.



All types of bar soaps but doesn’t include liquid hand wash and dishwashing paste.


Soap Powder & detergents

Includes all types of detergents in the form of powder, liquid  and paste including cleaning detergents.



Includes only brown/raw sugar and excludes sugar in other forms such as castor, icing sugar, white sugar, cube, candy etc.



Includes tea of all types and packaging and excludes products such as bottled ice tea.


Toilet Paper

The category excludes products such as tissues, serviettes, paper towels, etc.



All types of toothpaste in tube form and excludes other products for oral dental hygiene such as mouth wash, floss, etc.




15% VAT Goods and Services






Air conditioners

All type of air conditioning units



All type of electric dishwashers



All type of electric clothes dryers


Electric jugs

All type of electric jugs


Electric lawn mowers

All type of electric lawn mowers


Electric and gas stoves

All type of stoves and cooktops including gas and electrically powered


Hair dryers

All type of electric hair dryers



All type of microwaves


Refrigerators and freezers

All type of refrigerators and freezers


Mobile phones

All types of mobile phones including smart phones and high end mobile phones



All types of television



All types of electric toasters


Washing machines

All types of washing machine


Passenger motor vehicles

Passenger motor vehicles excluding twin cabs, minivans, buses, trucks, ambulances and motor caravans


Alcohol and tobacco

All types of alcohol, tobacco and products containing tobacco


Textile, clothing and footwear

Fabrics, clothing and footwear including blankets, linens, curtains, handkerchief, etc.


Perfume, jewellery and watches

Perfume (excluding deodorants), jewellery, precious stones, pearls and watches.


Electrical machinery and equipment

Generators, converters, transformers, electro-magnets, battery cells, batteries, electrical accumulators, vacuum cleaners, electro-mechanical domestic appliances such as food grinders, mixers, juice extractors, shavers, hair clippers and hair removing appliances, electrical ignition or starting equipment, electrical lighting or signaling equipment, portable electric lamps, industrial or laboratory electric furnaces and ovens, electric laser or other light or photon beam, soldering, brazing and welding machines, storage water heaters and immersion heaters, hair curlers, grillers and roasters, coffee maker, modems,  aerials and aerial reflectors, headphones and earphones, sound and video recording and reproducing apparatus,  discs, tapes and smart cards for recordings, flat panel display modules, transmission apparatus for radio broadcasting or television, radar apparatus, reception apparatus, television cameras, monitors and projectors, Electrical signaling, safety or traffic control equipment for roads, Electric sound or visual signaling apparatus, Electrical capacitors, Electrical resistors, Printed circuits , Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, fuses, lightning arresters, voltage limiters, surge suppressors, plugs and other connectors, junction boxes), Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus for electric control or the distribution of electricity, Electric filament or discharge lamps, Thermionic, cold cathode or photo-cathode valves and tubes, Semiconductor devices (for example, diodes, transistors, semiconductor based transducers); photosensitive semiconductor devices, Electronic integrated circuits, Insulated wire cable (including co-axial insulated electric conductors) , Carbon electrodes, carbon brushes, electrical insulators of any material, Insulating fittings for electrical machines, part and accessories.



Stereo/sound systems

Speakers, microphones, headphones, amplifiers, etc.


Professional, scientific and technical services

This includes legal and accounting, management and consultancy, architectural and engineering, scientific research and development, advertisement and market research and veterinary activities only.


Environment and Climate Adaptation Levy prescribed services

1.      Provision of accommodation, refreshments and any other services by a licensed hotel.

2.      Any services provided in a vessel that is wholly or principally engaged in the carriage of tourists within Fiji.

3.      Provision of meals or beverages, and any other services in a licensed bar. For the purpose of this paragraph, “bar” includes any club.

4.      Provision of services such as music, dancing or other entertainment including other services in a licensed nightclub.

5.      Provision of inbound tour services.

6.      Live entertainment provided wholly or substantially by the personal participation of artists at the place of performance or exhibition of products, where a fee is charged.

7.      Provision of services for recreational activity for gain.

8.      Provision of services relating to any exhibition of films to the public or to a section of the public which includes the production of any music, speech or other sound whatsoever in connection with the projection of a film, where the exhibitor is licensed under the Cinematographic Films Act 1971 and a charge is made for admission to the premises where the exhibition is held, including any other services provided by cinema operators.

9.      Provision of services relating to hire or rent of motor vehicle by a person that operates a business of hired cars or rental cars licensed by the Land Transport Act 1998, and the provision of chartered transport services to tourists by an omnibus or a mini-bus operator.

10.  Provision of meals, beverages and other services by bistros or coffee shops.

11.  Provision of meals, beverages and other services regularly supplied on sale to the public by a licensed restaurant.

12.  Provision of charter flight services provided by an aircraft or helicopter registered with the Civil Aviation Authority of Fiji, except for medical or natural disaster relief evacuation services.

13.  Provision of all water sports including under water activities and river safaris.

14.  Provision of accommodation in a private residence or property that accommodates tourists, international students or overseas visitors who are paying guests excluding any pre-school registered by the Ministry of Education, primary school, secondary school, the Fiji National University, Montfort Boystown, the Pacific Regional Seminary, the Pacific Theological College and the University of the South Pacific, or any other similar educational institution as approved by the CEO, but does not include any educational institution that is carried on for the purposes of commercial profit or gain to any proprietor, member or shareholder.

15.  Provision of similar services listed in all the above conducted by an unlicensed operator




     FRCS CONTACT                                                            

For all enquires                                                         

Email:   nationalbudgetresponse@frcs.org.fj.                     

Phone: (679) 3243000         




















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