THE Consumer Council of Fiji has received complaints from people about the increase in the price of food at certain restaurants and cafes around the country.

Council CEO Premila Kumar said yesterday they received 10 complaints from consumers on the issue.

She said last year restaurants and cafes with an annual turnover of $1.5million were paying 15 per cent VAT and 5 per cent service turnover tax (STT), a total of 20 per cent.

Ms Kumar said things had changed from this year.

“The same restaurants and cafes with a gross turnover of $1.25m will be charging 9 per cent VAT and service tax increased by 5 per cent so they will be charging 10 per cent.

“And a new levy has been introduced, which is the environment levy of 6 per cent, and therefore the total tax paid by the restaurants and cafes are 25 per cent now,” she said.

With the 5 per cent increase in the tax paid by the restaurants and cafes, she said, restaurants and cafes had increased their prices to offset the added tax.

Ms Kumar said with the income turnover being brought down to $1.25m this year, more restaurants and cafes would be captured in the net.

“But as we are seeking complaints we are also seeking verifications from the Fiji Revenue and Customs Authority to understand whether these restaurants and cafes are registered for VAT,” she said. “Only those restaurants and cafes that are registered with FRCA for VAT can increase their prices.”