Govt will take a hit on the revenue by totally letting go of the 15% VAT on fuel - Westpac Senior Economist

The government will take a hit on the revenue by totally letting go of the 15% VAT on fuel because it is a very widely used commodity.

While responding to a question if the government will be able to remove the VAT on fuel during the post budget panel discussion at the Reserve Bank of Fiji, Westpac Senior Economist, Krishal Prasad says the removal of 20 cents fuel tax was a welcome step in the Revised Budget.

A question was raised by an Environment Safety Consultant if it is possible to remove the 15% VAT on fuel to ease the burden caused by rising prices.