The Fiji Revenue and Customs Service (FRCS) has reported a historic tax collection of $3.1 billion for the 2023-2024 fiscal year. This amount surpasses the initial forecast by $68 million, marking the first time that the tax revenue has exceeded $3 billion.
According to FRCS CEO Udit Singh, the previous highest revenue collections were $2.83 billion in the 2017-2018 fiscal year and $2.81 billion in the 2018-2019 fiscal year, both occurring before the pandemic disrupted economic activities.
Singh credited this record achievement to the vigorous economic recovery and enhanced tax compliance. He noted that exceeding the $3 billion mark is a substantial milestone for the FRCS, reflecting the resilience and growth of significant economic sectors in Fiji.
He highlighted that the gains were driven mainly by performance in sectors such as manufacturing, wholesale and retail trade, as well as accommodation and food services. Value-added tax (VAT) represented the largest portion of the revenue, accounting for 44 percent, followed by income taxes at 30 percent, customs taxes at 17.8 percent, and 8.1 percent from other taxes and levies.
The notable rise in VAT collections can be attributed to increased economic activity, a rise in import volumes, the VAT rate adjustment from 9 percent to 15 percent, and proactive compliance measures by FRCS. Singh emphasized the success of their efforts to enhance compliance and accurate tax collection.
The overall tax revenue for 2023-2024 reflects a significant increase of 36 percent or $819 million compared to the previous fiscal year. In light of this achievement, Singh reiterated FRCS’s commitment to reinforcing compliance measures, assisting taxpayers, and creating a transparent and efficient tax system that supports economic growth and development in Fiji.