The Fiji Revenue and Customs Service (FRCS) has announced impressive net revenue collections amounting to $1.2 billion within the first four months of the current fiscal year. This figure surpasses forecasts by $105 million, marking an increase of 9.9 percent, and reflects an uplift of $178 million or 18 percent compared to the same period last year.
The consistent monthly performance has been highlighted as a key contributor to these results. In August, revenue collections reached $291.9 million, exceeding predictions by $53.5 million or 22.5 percent. September followed suit with net revenue of $290.9 million, surpassing expectations by $8.6 million, or 3.1 percent. The upward trend continued in October, where collections surged to $300 million, exceeding forecasts by $24 million, representing an 8.7 percent variance. November also showcased robust performance, with net collections hitting $286.5 million, above forecasts by $18.9 million or 7.1 percent.
FRCS attributes this remarkable outcome to strong performances across major tax categories including VAT, Income Tax, and Trade and Customs taxes. FRCS CEO Udit Singh noted that the happy results are indicative of vigorous commercial activities across all sectors of the economy, with a notable boost from the tourism sector’s recovery. Increased business activity has also resulted in higher income tax payments, alongside rising consumer demand fueling VAT collections.
Further, Singh highlighted that successful compliance initiatives like the VAT Compliance Drive and awareness programs, coupled with the establishment of the new Post Assessment Verification Unit, have played a vital role in enhancing revenue collection.
Looking ahead, Singh remains optimistic about continued positive revenue projections for December 2024 and onward, suggesting a hopeful outlook for Fiji’s economy as business activities ramp up.
This news is a testament to Fiji’s economic resilience and recovery, particularly in the tourism sector, signaling a bright path forward for both the government and the business community. The proactive measures taken by the FRCS highlight the importance of effective compliance programs in driving economic growth.
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