The Fiji Revenue and Customs Service (FRCS) has reported a remarkable tax collection of $3.1 billion for the 2023-2024 fiscal year. This figure not only surpasses the initial forecast by $68 million (2.3 percent) but also marks the first time that the tax revenue has exceeded $3 billion.
FRCS CEO Udit Singh highlighted that the previous highest collections were $2.83 billion during the 2017-2018 fiscal year and $2.81 billion in the 2018-2019 fiscal year, which were both prior to the COVID-19 pandemic. He credited this historic success to a strong economic recovery and improved compliance rates.
“Reaching the $3 billion revenue threshold is a major milestone for the Fiji Revenue and Customs Service and reflects the resilience and growth of vital economic sectors in Fiji,” Mr. Singh stated in a recent announcement from the FRCS. He added that the strong performance is indicative of recovery in sectors such as manufacturing, wholesale and retail trade, and accommodation and food services.
Value-added tax (VAT) was the largest contributor, making up 44 percent of total revenue. Other sources included income taxes, which accounted for 30 percent, customs taxes at 17.8 percent, and 8.1 percent from miscellaneous taxes and levies. The rise in VAT collections is attributed to increased economic activity, greater import volumes, a VAT rate hike from 9 percent to 15 percent, and compliance initiatives instituted by the FRCS.
“The significant rise in VAT collections, fueled by the rate adjustment and robust economic activity, underscores the effectiveness of our compliance enhancements in ensuring accurate tax collection,” Mr. Singh remarked. He noted that income taxes are also performing well, with both corporate and PAYE collections indicating a strong economic rebound.
The total tax revenue for 2023-2024 represents a substantial increase of 36 percent, or $819 million more than the previous fiscal year. Mr. Singh reaffirmed the FRCS’s commitment to reinforcing compliance measures, supporting taxpayers, and promoting a transparent and efficient tax system that bolsters Fiji’s economic growth and development.