Fiji Fights Back Against Billion-Dollar Black Economy

Fiji’s underground economy is a pressing issue, costing the nation nearly a billion dollars annually in lost tax revenue, according to Udit Singh, CEO of the Fiji Revenue and Customs Service (FRCS). This significant financial loss arises from various economic activities that occur outside the formal tax system, including unlicensed businesses and individuals evading taxes. Singh noted that a staggering amount of money circulates without proper records, receipts, or accountability, ultimately hampering economic growth.

To combat this challenge, Singh expressed the agency’s commitment to encouraging voluntary compliance among those operating in the black economy. He revealed that the FRCS is implementing digital solutions like QR codes and M-PAiSA payments aimed at integrating these unregulated operators into the formal economy.

Support for these efforts comes from Assistant Finance Minister Esrom Immanuel, who stated that new monitoring systems are in place to track suspicious activities and non-compliant businesses effectively. He emphasized the detrimental impact that the black economy has on Fiji’s financial growth and reiterated the importance of ensuring all citizens adhere to tax regulations.

This crackdown on unreported financial activities complements the establishment of a dedicated tax crime task force by the government, further illustrated by previous reports. The task force’s goal is to enhance tax compliance and eliminate the adverse effects of tax evasion, ensuring that everyone contributes their fair share to Fiji’s economic health. By collaborating with international agencies, including the Australian Tax Office, the task force aims to provide better insight into the scale of the shadow economy and develop strategies for addressing tax non-compliance.

The Fijian government’s proactive measures signal hope for the nation, as these initiatives could lead to increased revenue for national development and a more equitable economic environment where transparency and accountability are prioritized. This collective effort emphasizes the vital role that every citizen plays in fostering a prosperous future for Fiji.