Vanuatu has raised value added tax to 15 percent, effective from this week.
Photo: Supplied
All retailers have been instructed by the VAT Office to put up a notice to their customers advising them of the 2.5 percent increase.
VAT was first introduced 20 years ago as part of the country's Comprehensive Reform Programme.
However, our correspondent said revenue collection under VAT had fallen short of the government's expectations.