SUVA, June 26 (Xinhua) -- The Fijian Government announced a series of measures in its 2026-2027 National Budget on Friday to cushion households from rising living costs and the impact of higher global fuel prices, while maintaining tax rates and expanding targeted subsidies.
Esrom Immanuel, minister for finance, commerce and business development, said the budget prioritizes protecting household incomes despite growing fiscal pressures, confirming there will be no salary cuts for the country's 42,000 civil servants, whose incomes support more than 200,000 people.
The government will keep the Value Added Tax (VAT) at 12.5 percent and maintain zero VAT on 22 essential items, including rice, flour, sugar, cooking oil, canned fish, milk, soap, toilet paper, cooking gas, kerosene and prescribed medicines.
The measure is expected to provide around 500 million Fijian dollars (about 230 million U.S. dollars) in annual relief.
Personal income tax and corporate tax rates will also remain unchanged.
The Budget also includes measures to offset rising transport and electricity costs.
Existing social programs, including free education, free student bus fares, free medicines, subsidized dialysis, first-home buyer grants, free legal services, and full tertiary scholarships, will remain in place.
As part of efforts to improve food affordability, the government will maintain lower import duties on a range of food products, including frozen fish, dairy products, fruits and vegetables, while continuing a gradual review of tariff protections for domestic manufacturers. ■
