InfoAnda - Sanctions-hit Fiji hikes consumer tax to repay debt

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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Singapore Asia Pacific World Sanctions-hit Fiji hikes consumer tax to repay debt AFP - 1 hour 27 minutes ago Send IM Story Print Sanctions-hit Fiji hikes consumer tax to repay debt Slideshow: Full Photo Coverage: Business & Economy SUVA, Fiji (AFP) - – The Pacific island nation of Fiji, which has been subject to international sanctions since a 2006 coup, announced it will hike its consumer tax to 15 percent to make debt repayments. Fiji's economy has struggled because of the global recession and sanctions imposed by the European Union, the United States, Australia and other countries since the military coup put Voreqe Bainimarama in power. Bainimarama, who was returning from meetings with industry and business leaders in China, has refused Western demands for an early return to democratic elections. Details of the value added tax (VAT) increase from 12.5 percent were given in a budget address by acting Finance Minister Aiyaz Sayed-Khaiyum. "The increase in VAT will ensure that Fiji is able to sustain its debt repayments now and in the future," Sayed-Khaiyum said on Friday. Despite the tax hike, certain food items and pharmaceutical products will remain outside the VAT regime. The budget forecasts total revenue of 1,745.7 billion Fiji dollars (936.39 million US) against expenditure of 1,961.7 billion, leaving a deficit of 216 million dollars. The VAT increase is forecast to bring in an additional 80 million dollars. More than 20 percent of the 526 million dollar capital expenditure budget will be spent on the crucial sugar industry, which is the lifeblood of the Fiji economy and supports about 20 percent of the population. The military budget for 2011 is 108 million dollars, up eight percent on this year's revised military budget estimate of 100 million. Recommend Send IM Story Print Related Articles Indian property sector rocked by scandal AFP - 15 minutes ago TMSF says cancels Adabank tender Reuters - 17 minutes ago Petronas Chemicals raises $4.1 bln in IPO AFP - 21 minutes ago FOREX-Euro hobbled by debt woes, Aussie tumbles Reuters - 26 minutes ago India Religare says not being probed in bribery scam Reuters - 27 minutes ago News Search Top Stories 600,000 die each year from passive smoking: study Irish bailout talks accelerate as PM faces new setback Europe bans baby bottles with Bisphenol-A Merkel seeks to soothe markets on eurozone Wealthy Americans say: 'Tax us' to ease deficit' More Top Stories » Related Full Coverage China Economychina economy All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended US, S.Korea plan war games after N.Korean attack Toyota still in 'crisis' one year after recalls New AIDS cases fall by one fifth in a decade: UN Wealthy Americans say: 'Tax us' to ease deficit' Many cancers detected late in US: study More Most Viewed » 'Naked' airport scanners may be 'dangerous' EU fines 11 airlines 800 million euros for air cargo cartel Pilgrims stone 'devil' as Muslims celebrate Eid World leaders scramble for funds to save the tiger US, S.Korea plan war games after N.Korean attack More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Entertainment Photos Yahoo! News Network Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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