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 predictions by $68 million, which represents a 2.3 percent increase, and marking the first time the revenue has exceeded the $3 billion threshold.
FRCS CEO Udit Singh stated that prior to this achievement, the highest tax revenues recorded were $2.83 billion in the 2017-2018 fiscal year and $2.81 billion in the 2018-2019 fiscal year, both of which occurred before the pandemic.
Singh credited the new record to a strong economic recovery and improved compliance. He emphasized that surpassing the $3 billion milestone reflects the resilience and growth of vital economic sectors in Fiji.
The chief executive highlighted that the robust performance is tied to recovery and expansion in sectors such as manufacturing, wholesale and retail trade, as well as accommodation and food services.
Value-added tax (VAT) was the largest contributor, accounting for 44 percent of total revenue. Other contributions included income taxes (corporate tax and Pay As You Earn) at 30 percent, customs tax at 17.8 percent, and 8.1 percent from other taxes and levies.
The notable rise in VAT collections was attributed to increased economic activity in key sectors, higher import volumes, the adjustment of VAT from nine percent to 15 percent, and compliance initiatives undertaken by FRCS.
Singh remarked on the significant boost in VAT collections, highlighting that it showcases the effectiveness of their compliance efforts and accurate tax collection.
He also mentioned the strong performance in income taxes, noting that both corporate and PAYE collections reflect a solid economic rebound.
The total tax revenue for 2023-2024 represents a 36 percent increase, or $819 million more, compared to the 2022-2023 fiscal year.
Singh reaffirmed FRCS’s dedication to enhancing compliance measures, assisting taxpayers, and promoting a transparent and efficient tax system that facilitates Fiji’s economic growth and development.