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Monday
Nov292010

Fiji Water Closes Fiji Facility

Photo Courtesy - Getty Images(LOS ANGELES) -- Fiji Water has announced it will be closing its facility in Fiji due to an increase in taxes.

The company made the announcement on Monday, saying that the government’s new 15-cent-per-liter tax was untenable, and as a result the company has no other choice but to close the facility. The Fiji government will impose the tax on bottled water locations where more than 3.5 million liters are extracted per month. Fiji Water falls in that category. Currently, the company pays one-third of one percent tax per liter of water.

Fiji Water issued the following statement: “We are saddened that we have been forced to make a business decision that will result in hardship to hundreds of Fijians who will now be without work.”

The company says as a result, it will be forced to cancel several large construction projects in Fiji and will have to cancel all ongoing purchases from local suppliers.

Company officials say the government’s action sends the message that the country is unstable and is becoming a risky place in which to invest.

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