The Fiji Motors Traders Association has warned of major job losses as a result of higher fiscal duties targeting the new vehicle market.
"Despite our pleas to the Government for a major review of tariffs for different classes of vehicles, we get an increase ahead of any other consideration," said FMTA president Ajay Lal said.
The industry has been affected as a result of the regime restructuring the highest tariff band - increasing fiscal duty from 27 per cent to 32 per cent.
As a result of the new fiscal duty rate and the appreciation of the Japanese yen and US dollar against the Fiji dollar, new vehicles will cost a lot more to land in Fiji.
The FMTA is forecasting a major decline in future sales of new vehicles, which will also see the downsizing of operations that could lead to the closure of sales and service centres and the loss of jobs.
The industry employs around 11,000 people.
The association also warned that the regime's decision to shift the used-vehicle age ceiling from six to eight years would open the doors to Fiji being used as a dumping ground.
"The Government's earlier position on the age ceiling and reform measures for used car imports is seen to be compromised," Mr Lal said.
He said there was no real merit in the move.
"By lowering import duty on vehicles under 1600cc engine capacity, customers will have had access to brand new vehicles at a lower sale price, thus eliminating the need to re- introduce aged vehicles that are safety and environment risk," Mr Lal said.
Source : The Fiji Times