Fiji: Concerns Over Suspected Price Manipulation Ahead Of VAT Reduction

26 July

As Fijians anticipate relief from the upcoming VAT reduction, slated to drop from 15% to 12.5% on 1 August 2025 - discovery of unjustified price increases by some eateries have sparked serious concern. The Consumer Council of Fiji has uncovered evidence suggesting businesses are pre-emptively raising prices to offset the tax cut, effectively depriving consumers of the intended financial benefits.

Through 530 market surveillances conducted before and after the National Budget announcement, the Council identified a troubling trend: certain food establishments have deliberately inflated prices in recent weeks leading up to the VAT reduction, in order to negate effectivelythe intended consumer benefit.

“This is a strategic manipulation of pricing,” said Seema Shandil, CEO of the Consumer Council of Fiji. “By raising prices now, these eateries can later claim to have passed on savings while keeping actual costs the same or even higher, undermining the intended financial relief for consumers. This behaviour is not only unethical but directly sabotages the government’s policy intent to alleviate the cost-of-living burden for ordinary Fijians”.

Notable examples include a fast-food outlet’s curry meal rising from $2 to $3, a Suva restaurant’s two-person meal increasing from $49.95 to $54, and menu hikes at multiple food courts. A prominent restaurant chain also raised its king-sized pizza price to $56.30, while a major supermarket’s chicken pie now costs $9.95 up from $7.95. The Council urges transparency and accountability to ensure the VAT reduction delivers its promised advantages to the public.

“We are extremely concerned that such behaviour not only rips off consumers but also erodes public trust in the fairness of the market. The VAT reduction has been announced to provide financial relief to Fijians, not to pad the margins of restaurants and eateries,” Ms. Shandil said.

The Council notes that food establishments are often harder to monitor due to variable pricing and the ease with which cost justifications, such as ingredient or labor costs, can be used to mask unjustified increases. When traders manipulate prices to suit their own interests, especially under the guise of “justified” cost increases, it sends a clear message that consumer welfare is secondary. This erosion of trust damages the relationship between businesses and the public, and if left unchecked, can weaken confidence in the broader market system. The Council firmly believes that ethical conduct and transparency must be upheld, particularly during times when government initiatives are aimed at easing the cost-of-living burden for ordinary Fijians.

The Council is urging all traders and businesses to act responsibly and ensure that the benefits of the upcoming VAT reduction are fully passed on to consumers. This is not just a matter of regulatory compliance, it reflects their broader duty of care and ethical responsibility to the public. As essential players in the economy, businesses must align their pricing practices with the government’s objective of easing the cost of living for all Fijians. Absorbing the VAT cut for profit undermines consumer trust and defeats the purpose of a policy designed to provide financial relief. Consumers are the backbone of every business, and treating them fairly through transparent and ethical pricing is vital, not only for maintaining customer loyalty and brand integrity, but also for upholding the principles of a just and fair marketplace.

Consumers are also encouraged to retain receipts and, where possible, compare past and present prices of the same item or meal. If a price increase is suspected, consumers should keep both the old and new receipts or take photos showing the change and report the matter to the Consumer Council of Fiji by calling toll-free 155 or emailing complaints@consumersfiji.org.

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