The Fiji Revenue and Customs Service (FRCS) has reported a record tax collection of $3.1 billion for the 2023-2024 fiscal year, surpassing initial forecasts by $68 million, or 2.3 percent. This marks the first time that tax collections have exceeded the $3 billion threshold.
FRCS CEO Udit Singh highlighted that prior to this achievement, the highest revenue collections were $2.83 billion in the 2017-2018 fiscal year and $2.81 billion in 2018-2019, the two years leading up to the pandemic. He attributed this historic accomplishment to a strong economic recovery and improved compliance.
“Reaching the $3 billion revenue milestone is a significant achievement for the Fiji Revenue and Customs Service and demonstrates the resilience and growth of key economic sectors in Fiji,” Singh stated. He noted that the robust performance is indicative of growth in sectors including manufacturing, wholesale and retail trade, as well as accommodation and food services.
Value-added tax (VAT) accounted for the largest portion of total revenue, contributing 44 percent. Other revenue components included income taxes, which made up 30 percent, customs tax at 17.8 percent, and other taxes and levies at 8.1 percent. The increase in VAT collections was attributed to heightened economic activity in key sectors, increased import volumes, an adjustment in the VAT rate from 9 percent to 15 percent, and compliance initiatives by FRCS.
“The significant rise in VAT collections, aided by the rate change and active economic engagement, reflects the success of our efforts in enhancing compliance and ensuring accurate tax collection,” Singh remarked. He added that income tax collections also performed well, indicating a strong economic rebound.
The total tax revenue for 2023-2024 represents a 36 percent increase, or $819 million, compared to the previous fiscal year. Singh reaffirmed FRCS’s commitment to strengthening compliance measures, supporting taxpayers, and fostering a transparent and efficient tax system to promote economic growth and development in Fiji.