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Fiji’s interim Finance Minister Mahendra Chaudhry says the five per cent Hotel Turnover Tax (HTT) imposed by the Government is not unfair for the tourism industry as it is one of the lowest turnover tax rate for hotels around the globe.
Chaudhry made the comments while reacting to concerns raised by some that the five per cent HTT is unfair and discriminatory for the tourism industry.
The Finance Minister said the tourism industry is gradually showing signs of improvements and therefore he disagrees that five per cent HTT would have a negative impact on the tourist industry.
“I must disagree with the claims that five per cent HTT is unfair because tourism industry is eventually bouncing back,” Chaudhry said.
However he said the tourism industry should look internally on ways it can become competitive.
“I think the industry needs to look internally to see what it can itself do to become cost competitive, look at its room rates, look at its food and beverage rate and other service rates which it chargers,” Mr Chaudhry said
He said this sort of tax goes up to 12% to 15% in many countries and in countries with which we are competing and Fiji has one of the lowest HTT.
“Now I have been to a number of countries around the globe and 5% turnover tax is one of the lowest that anyone will find anywhere in the world,” Chaudhry said.
