A solution has finally been reached between the state and the water bottlers, resulting in the interim administration scrapping the new duties imposed on bottled mineral water.
In a joint statement, it had been clarified that the interim government and various bottling water companies including Fiji Water, VTY, Island Chill, Aqua Pacific, Aqua Safe and Viti Blue have reached an amicable solution that will restart the bottle water production and shipments immediately.
The interim government will immediately repeal the 20 cents per litre excise and 20 cents per litre export taxes which were earlier approved by the interim cabinet and implemented by FIRCA.
In a joint statement from the interim Attorney General Aiyaz Sayed-Khaiyum and the water bottling companies, it had also been stated that the water bottling companies will file a notice of discontinuance in respect of the court proceedings filed yesterday afternoon.
It had also been revealed that the interim government and the water bottling companies will commence discussions regarding the appropriate level of compensation to be paid to the government by the various companies for the bottling of water. The compensation will be based on the global benchmark and financial circumstances surrounding the bottled water companies. Shipments of water both within Fiji and the export markets will immediately commence without the 20 cents per litre excise and 20 cents per litre export taxes.
Interim Finance Minister, Mahendra Chaudhry who proposed the duties is yet to comment.
Fijivillage had also received information that Chaudhry was not part of the talks with the water bottling companies last night.
Fijivillage Exclusive with Bainimarama
Commodore Bainimarama, what made you take action to ensure that a solution is found in relation to the water bottlers saga?
"When I heard that the water bottling plants were shutting down, I arranged for a meeting with the Attorney General who I had used earlier in bringing about an end to the bus strike. I had wanted someone outside who had an independent view of the problems that we had with the bottlers. So they had a meeting last night. They have arrived at an amicable solution with the bottling companies and I understand that the bottling companies will stop strike and they will start work immediately."
Why was this action was taken when the interim Finance Minister Mahendra Chaudhry has maintained all along that the duties should be paid by the water bottling companies?
"We took that same direction when we arranged the meeting with the Bus Owners Association. I just wanted somebody from the outside as I had said with an independent mind to talk to the business community. In this case, the bottlers, and I had members of my Military Council who were also present last night with the Attorney General to find out a resolution that we could come to, to provide a win-win situation for all. And I guess that’s what happened last night."
Did you speak to Mr. Chaudhry before the interim Attorney General and the members of the military council met with the water bottlers last night?
"I have not been able to get in touch with him. He had his phone off. But I tried to relay a message across to him that the Attorney General and members of the Military Council were going to sit in and talk to the bottling companies."
Will you speak to Mr. Chaudhry today as he had maintained that the taxes should stay as the decision made last night is in direct conflict with Chaudhry's stance?
"Yes, we need to talk. I have decided last night with the Attorney General and the members of the Military Council to repeal the 20 cent per litre excise and 20 cent per litre export taxes which were approved by cabinet so we need to talk about that."
Will you meet Mr. Chaudhry today in relation to this action taken by investors and having to move in to resolve the issue?
"Yes, I said we will go back to him today to tell him about the decision that we took last night."
What if Mr. Chaudhry disagrees with the decision taken last night as he had maintained that the water bottlers should pay the duty? What will you do then?
"I don’t want to pre-empt something that I don’t know about."
