The Fijian government is intensifying efforts to combat the shadow economy by introducing measures to ensure cashless transactions are adequately taxed. Acting Prime Minister and Finance Minister Prof. Biman Prasad has announced new requirements mandating that anyone using MPAiSA, a popular mobile financial service, must possess a Tax Identification Number (TIN). This move aims to prevent businesses from avoiding tax obligations by conducting transactions through personal accounts, which are often not recorded in official business books.
This initiative forms part of a broader tax compliance strategy led by the Fiji Revenue and Customs Service. The government aims to uncover unexplained wealth through new asset declaration requirements, ensuring that economic activities are not bypassing the tax system. For example, an individual declaring an annual income of $100,000, yet owning multiple houses and cars, may fall under scrutiny to determine the source of such wealth.
A part of these efforts also includes addressing issues related to narcotics and the wider shadow economy. Fiji is implementing container X-rays, with support from the Australian government, to monitor imports closely and ensure that all goods entering the country are legally accounted for.
Additionally, stringent identification regulations have been introduced for MPAiSA users, who must now provide valid identification documents like voter registration cards, or birth certificates with photo IDs, to avoid restrictions in using financial services. These measures aim to boost transparency and ensure all citizens and businesses pay their fair share of taxes, supporting national development.
Fiji’s steps towards strengthening financial integrity involve a comprehensive approach that combines regulatory changes, technological support, and international cooperation. By addressing tax evasion and illicit financial activities, the government seeks to foster economic fairness, stability, and growth, ensuring a prosperous future for all Fijians.
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