The 2025-2026 National Budget has been highlighted as a supportive measure for businesses and families in Fiji, according to Udit Singh, the CEO of the Fiji Revenue and Customs Services. Speaking at a recent post-budget conference hosted by the Nadi Chamber of Commerce and Industry, Mr. Singh emphasized the budget’s intention to reduce the financial burden on citizens while promoting economic growth.
A key feature of the budget is the reduction of Value Added Tax (VAT) from 15% to 12.5% effective August 1, 2025. This reduction aims to return approximately $250 million back to consumers, addressing rising costs of living for families. Furthermore, the budget grants VAT refunds for investments in renewable energy and home repairs related to termite damage, reinforcing a commitment to sustainability.
Additionally, the government has extended significant tax deductions for businesses that provide job placements and hire persons with disabilities, encouraging employment inclusivity and supporting the workforce. New incentives have also been introduced for tourism operators, featuring a 25% investment allowance for non-accommodation activities, thereby bolstering Fiji’s adventure and eco-tourism sectors.
On the import side, the budget highlights considerable tariff reductions on various goods, including chicken portions and frozen fish, while promoting green solutions with zero duty on solar-powered vehicles and electric golf carts. The government is also modernizing tax legislation to align with international standards, including clarifying the definition of ‘dividend’ for the Capital Gains Tax.
Importantly, businesses will need to establish separate e-wallet accounts for transactions and include unexplained e-wallet deposits in income calculations starting January 2026. This move aims to enhance transparency and ensure accurate reporting.
The overarching theme conveyed by Mr. Singh and others involved in the budget discussions is one of positive growth and proactive measures. The concerted efforts to alleviate financial pressures and enhance business conditions demonstrate a commitment to not only respond to current economic challenges but to pave the way for a more sustainable and prosperous future for all Fijians.
The sentiment surrounding this budget reflects optimism for improved living standards and economic stability, promoting a collaborative response to the challenges posed by rising costs and global uncertainties.
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