The Fiji Ministry of Finance is optimistic that the country will be removed from the European Union’s blacklist during an upcoming review. Permanent Secretary for Finance Shiri Gounder, speaking at a Post Budget Breakfast, highlighted the government’s commitment to supporting exporters and maintaining cooperative relationships with key organizations including the IMF, World Bank, and Asian Development Bank.
Gounder noted the importance of being delisted to protect Fiji’s reputation and facilitate ongoing trade opportunities. He pointed out that challenges remain, specifically concerning the Export Incentive Deduction (EID), which has been a significant hurdle since its introduction in 2012. Despite meaningful reforms in tax transparency and compliance, the EID is still a primary factor keeping Fiji on the blacklist.
The government is scheduled to engage in a review with the EU in the next four to six months and is confident about a favorable outcome if current trends continue. Discussions regarding the future of the EID will take place after the review, determining whether to modify the existing structure to meet EU requirements. Gounder assured that regardless of the review’s outcome, the government would continue to collaborate with the private sector to find compliant ways to support exporters, maintaining existing export benefits until 2025.
The government’s continuous efforts to address compliance with international tax standards reflect a broader commitment to improving Fiji’s global trade reputation. Should they succeed in overcoming these challenges, positive changes in foreign investments and enhanced economic prospects may follow, demonstrating a hopeful outlook for Fiji’s future in international trade.
Leave a comment