Fijian families and business owners grappling with the ramifications of termite damage are set to receive significant financial assistance following the Cabinet’s approval of an amendment to Section 28 of the Income Tax Act 2015. This new measure is a direct acknowledgment of the prevalent crisis caused by the Asian Subterranean Termite infestation, which has severely impacted homes, farms, and livelihoods across various regions of Fiji.
Currently, Section 28 permits property owners to claim tax deductions for funds allocated to a reserve intended for repairs after natural disasters, such as cyclones, tidal waves, or landslides. This deduction is capped at 1.5 percent of the building’s replacement cost for commercial, industrial, and agricultural structures. For residential properties, the limit is either 1.5 percent of the replacement cost or 500 dollars, whichever is lower.
The upcoming amendment will broaden the definition of Natural Disaster Reserve to include declared biosecurity emergencies, explicitly recognizing the ongoing termite crisis as a national threat. Once legislated, property owners affected by the infestation will have the ability to utilize their reserve funds in a tax-efficient manner for repairs or reconstruction of damaged properties.
For numerous families witnessing the gradual degradation of their homes, this legislative change offers a glimmer of hope. It signifies that financial mechanisms typically reserved for cyclone recovery can now address a long-standing, silent disaster that has been wreaking havoc in communities for over a decade.
The proposed Bill introducing these changes will be crafted with assistance from the National Disaster Management Office, ensuring that the new policy remains user-friendly for those in immediate need of support and is in alignment with the national strategy against termites.
This legislative amendment represents a proactive step towards alleviating the burdens faced by homeowners whose properties are deteriorating and farmers who are suffering losses of essential structures. By providing these vital financial tools, families can begin to rebuild without shouldering the burden alone, bringing a promising outlook for the future as they confront this creeping crisis.
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