The taskforce set to monitor the trickle-down effect of benefits of duty concessions to consumers as announced in the 2014 National Budget has been activated and retailers can expect spot checks.
Ministry of Finance permanent secretary, Filimoni Waqabaca said two separate committees had been formed including a technical team comprising of senior officers who have “done the plan on how to pursue the monitoring exercise”.
Retailers can expect spot checks as it will form one component of the monitoring, he said.
“Spot checks would be part of the monitoring that we will be doing. Random checks on traders who receive such concessions and seeing whether the benefits have been passed through to the customers or consumers,” the permanent secretary said.
Prime Minister and Minister for Finance, Voreqe Bainimarama, had announced in the 2014 budget address the formation of a taskforce that will “undertake price monitoring and surveillance on key policy items that have been granted duty concession”.
“Businesses that fail to pass on the concession to consumers will have their concession withdrawn,” the Prime Minister had said.
The taskforce comprises of the Finance Ministry, Ministry of Industry and Trade and Fiji Revenue and Customs Authority.
Mr Waqabaca said the technical team has also looked into the memorandum of understanding between the institutions that will be involved in the monitoring and the team will be sitting together soon to discuss the plans.
The new duty rates provided in the 2014 National Budget’s revenue policies will allow consumers to enjoy cheaper prices on certain goods as flow-on from retailers.
Some of these measures included:
- Food supplements reduced from 32 percent to zero percent (used by pregnant mothers, senior citizens and chronically ill patients)
- Baby feeding bottles reduced from 32 percent to zero percent (reduction in import of cheap baby bottles)
- Shipping incentive reduced to zero percent on importation of spare parts for maritime vessels
- Importation of agricultural items reduced to zero percent
- Exempt of bunker fee of two cents per litre for local fishing vessels and duty concession on specialised fishing item
- Import of blank CDs increased from $1 to $2 per CD
- Adult sanitary diapers reduced to zero percent
- Prefabricated counter-tops increased from 5 percent to 32 percent
- Concrete products and iron panels for prefabricated homes reduced from 32 percent to 3 percent while for factory/commercial use reduced from 32 percent to 5 percent
Meanwhile, the permanent secretary said initial figures have revealed that budget deficit is much lower than what was announced in the 2013 budget.
Mr Waqabaca said while fiscal updates for 2013 were still coming in but indications are that the budget was under-spent and capital projects saw 80 per cent implementation.
-ENDS-