The Fiji Revenue and Customs Service (FRCS) has reported a record tax collection of $3.1 billion for the 2023-2024 fiscal year. This figure surpasses the initial forecast by $68 million, amounting to a 2.3 percent increase, and marks the first time tax revenue has exceeded $3 billion.
According to FRCS CEO Udit Singh, the previous highest revenue collections were $2.83 billion during the 2017-2018 fiscal year and $2.81 billion in the 2018-2019 fiscal year, both of which occurred prior to the pandemic.
Singh credited this historic revenue achievement to a robust economic recovery and improved compliance measures. “Surpassing the $3 billion revenue mark is a significant milestone for the Fiji Revenue and Customs Service and reflects the resilience and growth of key economic sectors in Fiji,” he stated in a recent announcement.
The largest portion of the tax revenue came from value-added tax (VAT), which represented 44 percent of total collections. Other sources included income taxes, which contributed 30 percent, while customs tax made up 17.8 percent and other taxes and levies accounted for 8.1 percent. The increased VAT collections were attributed to heightened economic activity, increased import volumes, a VAT rate increase from 9 percent to 15 percent, and compliance initiatives implemented by FRCS.
“The remarkable rise in VAT collections, bolstered by the rate adjustment and active economic growth, underscores our efforts to enhance compliance and ensure accurate tax collection,” Singh noted. He also mentioned a strong performance in income taxes, with corporate and PAYE collections indicating a solid economic rebound.
The total tax revenue for 2023-2024 reflects a 36 percent increase, or $819 million more than the previous fiscal year.
Singh reaffirmed FRCS’s commitment to strengthening compliance measures, supporting taxpayers, and fostering a transparent and efficient tax system that aids Fiji’s economic development.