The Consumer Council of Fiji has expressed concern at the unjustified price increases by some eateries. ahead of the Value Added Tax (VAT) reduction, set to drop from 15% to 12.5% on August 1, 2025.
The Council said it has found evidence that certain businesses are raising prices to offset the tax cut.
Through 530 market surveillances conducted before and after the 2025-2026 National Budget announcement, the Consumer Council identified a troubling trend.
Some food establishments have deliberately inflated prices in the weeks leading up to the VAT reduction, undermining the policy’s goal of providing financial relief.
Some cases detected included a fast-food outlet’s curry meal, which rose from $2 to $3, a Suva restaurant’s two-person meal, now priced at $54, up from $49.95, a prominent restaurant chain’s king-sized pizza, which increased to $56.30 and a major supermarket’s chicken pie, now costing $9.95, up from $7.95.
CEO of the Consumer Council of Fiji, Seema Shandil said this was “a strategic manipulation of pricing.”
“This behaviour is not only unethical but directly sabotages the government’s policy intent to alleviate the cost-of-living burden for ordinary Fijians,” she said.
“We are extremely concerned that such behaviour not only rips off consumers but also erodes public trust in the fairness of the market.”
The Consumer Council is urging businesses to act responsibly and ensure the VAT reduction’s benefits are fully passed on to consumers.
“Consumers are the backbone of every business. Treating them fairly through transparent and ethical pricing is vital for maintaining customer loyalty, brand integrity, and the principles of a just marketplace.”
