Despite no significant alterations to tax policy, the Government is expecting an unparalleled $3 billion tax collection for the 2024-2025 fiscal year. This was revealed by Deputy Prime Minister and Minister of Finance Prof Biman Prasad during the presentation of the 2024-25 National Budget titled “An Economically Stable, Secure and Sustainable Fiji.”
Prof. Prasad attributed this forecast to the tax reforms implemented in the previous budget, which induced substantial growth in tax collections throughout the last year. “The Fiji Revenue and Customs Service (FRCS) is projected to surpass the $3 billion dollar mark in tax collections for the first time this year,” he noted.
For the 2024-2025 Budget, tax collections are estimated at $3.3 billion, whereas non-tax revenue collections are projected to reach $618 million. The tax office anticipates a collection of $1.029 billion from direct taxes and $2.269 billion from indirect taxes.
The new budget forecasts a net deficit of $635.5 million, equating to 4.5% of the Gross Domestic Product, and it is predicted that most of these funds will be borrowed domestically. The government plans to spend an estimated total of $4.55 billion, with an operating to capital expenditure ratio of roughly 73:27. “That’s 73% allocated towards operating costs and 27% set aside for capital,” Prof Prasad explained.