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Fiji Water closes factory after 15pc tax

 

Nov 29, 2010 12:00:00 AM

Fiji Water has closed its Fiji factory after the Fiji Government imposed a 15 per cent per litre tax on bottled water in the 2011 Budget.

Fiji Water president and COO John Cochran said from the company’s Los Angeles headquarters Fiji Water was affected by this tax.

He said the company is willing to work through this issue with the Fiji Government as they prefer to keep operating in Fiji.

Fiji Water represents more than F$130 million in export revenue for the country.

Fiji’s Prime Minister, Commodore Voreqe Bainimarama told FijiLive he would be releasing a statement in the coming days.

On Friday, Fiji’s Government quietly announced changes in the Budget to the Water Resource Tax Promulgation that was introduced in 2009 for the extraction of ground water for the purpose of bottling for human consumption.

From 2011, the extraction of water per month of more than 3.5 million litres will attract a tax of 15 cents per litre.

The Budget said the tax rate for the extraction of water below 3.5 million litres per month will remain at the existing rate of 0.11 cents per litre.

Just a few days before the 2011 Budget announcement, Fiji Water’s Director of External Affairs and Development David Roth was asked to leave the country.

Just a week earlier Fiji’s Minister of Defence and Immigration Ratu Epeli Ganilau quit over the Roth work permit issue.

Newsroom staff

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