23 Jun 2016

Fiji bumps up taxes on tobacco, alcohol and sugary drinks

10:36 am on 23 June 2016

Fiji's government has announced a hefty increase in taxes on tobacco, alcohol and sugary drinks as part of its 1.75 billion US dollar budget.

Fiji currency

Fiji currency Photo: Supplied

From today, excise duty on tobacco and alcohol will increase by 15%.

Tax on sugar sweetened and carbonated drinks will increase by twenty cents per litre.

Duty has also been increased on second hand vehicles depending on their engine capacity.

The FBC reports this will help a revenue estimate of $1.5 billion dollars.

The estimated net deficit stands at 225 million dollars - compared to 137 million in the previous budget.

The 2016/2017 National Budget is effective from August with economic growth forecast at 2.8 percent taking into account the negative impact of Cyclone Winston and the April floods.

Total damage from Cyclone Winston has been estimated at over 1.35 billion US dollars.