Budget provides relief to motor vehicle owners: ACCF

Recognising the impact of COVID-19, the Attorney General and Minister for Economy, Aiyaz Sayed-Khaiyum, announced a reduction of the Motor Vehicle Accident Levy by 50 per cent in the 2020/2021 National Budget.

This is effective from 1st August 2020 to 31st July 2021. Mr Sayed-Khaiyum confirmed this at the “New Normal” Symposium organised by the Fiji Commerce and Employers Federation at the Holiday Inn Suva last Saturday.

The Accident Compensation Commission Fiji (ACCF) fully supports the decision to significantly reduce the Motor Vehicle Accident Levy because this will certainly ease the financial burden on motor vehicle owners.

In a statement, ACCF chief executive officer Parvez Akbar said the commission had paid more than $12 million in compensation for motor vehicle, employment and school accidents and the reduction in the levy wouldn’t affect their ability to compensate victims of those accidents. With the passing of the Accident Compensation Act 2017 (the Act), the Fijian Government brought about the most significant transformation for victims of motor vehicle accidents in the history of Fiji.

The legislation ushered in a Government-funded compensation scheme, which enabled the payment of compensation to victims of motor vehicle accidents in Fiji without having to establish fault. It also removed the need for victims to pursue their claims through protracted and costly legal proceedings. In the 2018/2019 Budget, Mr SayedKhaiyum announced the expansion of the compensation scheme to include employment and school accidents.

Funding for the compensation payments comes from the Motor Vehicle Accident Levy that motor vehicle owners pay to the Land Transport Authority and 40 per cent of the 1 per cent FNU Levy paid by employers.