Fiji Labour Party (FLP) leader Mahendra Chaudhry has criticised the continued concession to bottling companies as unwarranted and discriminatory and called on Finance Minister Biman Prasad to justify the seven-year tax holiday granted to water bottling companies, including Fiji Water in the 2023-2024 National Budget.
He said considering bottling companies were well-established, and the tax rate for all other corporate organisations had been increased to 25 per cent, “there is simply no logic or rationale behind this absurd decision”.
Mr Chaudhry claimed Prime Minister Sitiveni Rabuka, permanent secretary Peter Wise and Fiji’s permanent representative to the UN Filipo Tarakinikini were dined and entertained by the American owners of Fiji Water in Los Angeles recently.
“One must ask whether there is a link between the meeting in Los Angeles and the controversial seven-year tax exemption granted to water bottling companies including Fiji Water,” he said.
“Not only that, we are informed that Fiji Water has put in an application to expand its operations in Fiji with the addition of two more aquifers.
“This is undergoing environmental impact assessment by the Environment Ministry under the Office of the Prime Minister.
“The Los Angeles meeting and entertainment is significant in light of the tax concession granted to bottling companies.
“It should be noted that Fiji Water (100 per cent foreign owned) is by far the largest, most profitable and longest established water bottling company in Fiji.
“The Prime Minister should have exercised better discretion and followed the ministerial code of conduct. He should have stayed away from being hosted by the principals of Fiji Water while their application for additional aquifers is pending consideration.”
