The Fiji Revenue and Customs Service (FRCS) announced a remarkable net revenue collection of $1.2 billion during the first four months of the current fiscal year. This revenue surpasses the initial forecast by $105 million, equating to a 9.9 percent increase, and demonstrates an impressive rise of $178 million, or 18 percent, in comparison to the same period last year.
FRCS attributed this success to consistently strong monthly performances. In August, revenue collections totaled $291.9 million, exceeding forecasts by $53.5 million, representing a 22.5 percent overage. This trend continued into September, where net revenue reached $290.9 million, surpassing expectations by $8.6 million (3.1 percent). October saw a notable increase, with revenue surging to $300 million, yielding a positive variance of $24 million, or 8.7 percent, against forecasted figures. In November, collections stood at $286.5 million, exceeding projections by $18.9 million (7.1 percent).
All major tax categories, including Value Added Tax (VAT), income tax, and trade and customs taxes, have shown exceptional performance. FRCS CEO Udit Singh credited this positive outcome to strong performances across key economic sectors as well as proactive compliance initiatives.
Singh highlighted that this robust revenue performance signals heightened commercial activity throughout various sectors, especially within the tourism industry. There has also been an increase in income tax payments correlated with improved business turnover and profitability, alongside a notable rise in VAT collections driven by growing consumer demand.
Moreover, the enduring strong revenue results reflect enhanced compliance efforts, such as the VAT Compliance Drive and effective awareness and education programs, along with the establishment of a new Post Assessment Verification Unit. Singh expressed optimism regarding revenue projections for December 2024 and beyond, anticipating a continuation of this favorable trend.
This positive financial performance not only showcases the resilience and growth potential of Fiji’s economy but also reflects the effectiveness of the FRCS’s strategies in fostering compliance and encouraging economic activity. The promising outlook for revenue collections bodes well for future investment and development opportunities within the nation.
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