The Fijian government has introduced a formal process for individuals or entities seeking tax exemptions and holidays to establish drug rehabilitation centers in the country. This initiative comes in response to the increasing need for rehabilitation amid a growing substance abuse issue, particularly among the youth.
According to the new Income Tax (Drug Rehabilitation Centre Incentives) Regulations 2025, individuals or entities must apply for approval from the Finance Ministry and the Fiji Revenue and Customs Service (FRCS). The application process requires various documents, including personal details, a financial statement outlining assets and liabilities, a detailed description of the proposed location and amenities of the rehabilitation center, and a sketch plan indicating the site’s layout.
Moreover, applicants are required to include an estimate of the project’s cost and, if the work will be carried out in stages, the proposed financing methods. Crucially, provisional approval must be obtained before the project begins to qualify for the incentives package that includes full exemptions from all duties, such as VAT.
This move aligns with the Fijian government’s broader strategy to combat drug addiction, which has seen officials like Local Government Minister Maciu Nalumisa emphasizing the need for business investment in community-based solutions. Nalumisa noted that businesses willing to establish these centers could benefit from lengthy tax holidays, while also contributing to the greater good by addressing drug addiction among the young population, which is especially acute given that about 50% of Fiji’s population is under the age of 34.
The government’s approach is not just about infrastructure; it also includes the initiation of the Counter Narcotics Strategy for 2023-2028 and the formation of a Narcotics Bureau aimed at reducing drug supply and demand. As part of a hopeful shift towards recovery and wellness, this initiative underscores the potential for a collaborative effort between the government, businesses, and communities, fostering a healthier and more resilient environment for Fiji’s youth.
With these comprehensive measures, there is optimism that Fiji can effectively tackle the challenges arising from drug addiction, paving the way for a brighter future for the younger generation.
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