Fiji has been working diligently over the past 12 years to have its name removed from the European Union’s (EU) tax blacklist. Opposition Member of Parliament Faiyaz Koya highlighted that Fiji is labeled as a “non-compliant tax jurisdiction” by the EU, which significantly impacts the nation’s trade and investments with European countries. He noted that this designation can deter foreign companies, such as French contractors, from participating in local tenders, affecting infrastructure projects in Fiji.
Deputy Prime Minister and Minister of Finance Prof. Biman Prasad reassured that the government is actively addressing this issue. He mentioned that Fiji is engaged in a regional initiative focused on enhancing correspondence banking relationships, with support from the World Bank. Prasad emphasized the importance of establishing processes to combat anti-money laundering (AML) concerns, citing engagement with 180 AML compliance officers from financial institutions.
The EU placed Fiji on its blacklist in 2019 after the implementation of a tax incentive package by the previous government, which did not align with EU tax standards.
Despite the challenges, Fiji’s ongoing efforts to improve its compliance and engage with international partners highlight the country’s commitment to enhancing its financial reputation. If successful, these initiatives could pave the way for increased foreign investments and a strengthened economic outlook for Fiji.
Summary: Fiji continues to strive for removal from the EU’s tax blacklist, which has hindered trade and investment. The government is taking proactive measures to address compliance issues through regional initiatives and collaborations.
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