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Fiji’s retailers have lauded the 2009 Budget as pro-poor with a lot of incentives and facilitation for investors.
Fiji Retailers Association President Himmat Lodhia said they expect a lot of new ventures and industries take advantage of what the interim Government has offered.
“The incentives for the maritime region and the northern division are sure to attract entrepreneurs,” he said while congratulating the acting Minister of Finance and Prime Minister Commodore Voreqe Bainimarama for a well delivered and sustainable budget in these tough times.
“The 13 to 18 year tax holidays will certainly be draw cards for quite a few companies.”
Lodhia, however, believes that the incentives will not be draw cards for smaller capitalised companies “unless the Government decides to reduce capital injection to realistic levels to attract small and medium sized industries”.
“There are a few companies which can invest a capital less than $2 million, but give new jobs to a lot of people.
“The retention of the personal tax base at $15,000 and company taxes to be reduced to 29% and 28% in the forthcoming years is a welcome sign by most people in Fiji. We believe this was overdue.”
Lodhia believes that the price control on commercial rents must continue and urged increased control on banks interest, interest spread, fees and charges.
“With the increased loading of FEA charges, we were expecting zero duty and VAT on all alternative systems such as solar power and panels,” he said.
Lodhia said that energy saving lights at zero is a good gesture.
“Increasing duty on mobile phones may not be the best way as this is an important tool for communication,” he said.
Overall, Lodhia said the budget seems to be focused although a lot of sectors seem to have missed out.
