The Fiji Revenue and Customs Service (FRCS) has reported a historic tax collection of $3.1 billion for the 2023-2024 fiscal year, surpassing initial projections by $68 million or 2.3 percent, and marking the first time that revenue has exceeded the $3 billion threshold.
Udit Singh, the chief executive officer of FRCS, noted that prior to this milestone, the highest tax collections were $2.83 billion in the 2017-2018 fiscal year and $2.81 billion in the following year, both occurring before the pandemic.
Singh attributed this unprecedented achievement to strong economic recovery and improved compliance rates. “Surpassing the $3 billion revenue mark is a significant achievement for the Fiji Revenue and Customs Service, demonstrating the resilience and growth of essential economic sectors in Fiji,” he stated in a recent announcement.
He highlighted that key industries including manufacturing, wholesale and retail trade, and accommodation and food services have shown robust recovery and expansion.
Value-added tax (VAT) made up the largest portion of the total revenue at 44 percent, with other contributions stemming from income taxes (30 percent), customs tax (17.8 percent), and other levies (8.1 percent). The increase in VAT revenue was fueled by growth in economic activity, higher import volumes, a change in VAT rate from nine percent to 15 percent, and enhanced compliance initiatives by FRCS.
“The impressive rise in VAT collections, supported by the rate adjustment and dynamic economic activity, underscores our success in improving compliance and ensuring accurate tax collection,” Singh remarked. He also noted a strong performance in income tax collections, with both corporate and PAYE taxes reflecting significant economic recovery.
The total tax revenue for 2023-2024 marks a 36 percent increase, amounting to $819 million more than the previous fiscal year. Singh reaffirmed FRCS’s commitment to strengthening compliance measures, aiding taxpayers, and promoting a transparent and efficient tax system that bolsters Fiji’s economic growth and development.