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Fiji will reduce its standard VAT rate from 15% to 12.5% starting 1 August 2025, reversing the August 2023 increase and aiming to ease cost-of-living pressures.
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Zero-rated supplies, including essential food items and household goods, will remain unchanged, ensuring continued tax relief on basic necessities for the population.
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Despite the rate cut, the government expects the reform to save citizens $500 million, while projected VAT revenue for 2025–26 remains strong at an estimated $446 million.
Source: vatcalc.com
