The Fijian government is now offering significant incentives to encourage the establishment of drug rehabilitation centers in light of the growing substance abuse crisis, particularly among the youth. Finance Minister Professor Biman Prasad announced that individuals or entities setting up these facilities will benefit from full exemptions from all duties, including value-added tax, as outlined in the newly gazetted Income Tax (Drug Rehabilitation Centre Incentives) Regulations 2025.
Under these regulations, which come into effect on August 1, 2024, applications for rehabilitation centers will undergo vetting by the Ministry of Finance and the Fiji Revenue and Customs Service (FRCS). The assessment will focus on the center’s size, suitability for the area, and the amenities offered.
Financial incentives are tiered based on capital investment: those investing between $250,000 to $1 million are eligible for a five-year tax exemption; investments from $1 million to $2 million receive a seven-year holiday; and investments exceeding $2 million qualify for a substantial 13-year exemption. However, any project receiving provisional approval must be completed within 24 months.
The initiative aligns with ongoing calls from non-governmental organizations and civil society for the government to seriously address issues of drug addiction, particularly concerning methamphetamine and marijuana use among the youth. This support reflects a growing recognition of the urgent need for rehabilitation services in Fiji.
Local Government Minister Maciu Nalumisa previously emphasized the importance of business involvement in establishing these centers, indicating that a collective effort is crucial for effective solutions. The government’s holistic approach is reinforced by additional plans, like creating a new Narcotics Bureau within the Ministry of Home Affairs, and implementing the Counter Narcotics Strategy for 2023-2028, which aims to address demand and supply reduction as well as other critical areas.
This initiative is a hopeful sign of progress in Fiji’s approach to combating drug addiction, aiming to not only rehabilitate individuals but also to create healthier environments for future generations. The collaboration between the government, businesses, and communities could lead to improved prospects and a significant reduction in drug-related issues among the youth.
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