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Illustration of $1.2b revenue collected in 4 months: FRCS

Fiji’s Revenue Collection Surges: What’s Driving the Boom?

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The Fiji Revenue and Customs Service (FRCS) has announced impressive financial results, reporting a net revenue collection of $1.2 billion at the conclusion of the first four months of this fiscal year. This figure surpasses their initial projections by $105 million, equating to a 9.9 percent increase, and indicates a robust growth of $178 million, or 18 percent, compared to the same timeframe last year.

FRCS attributed these encouraging results to steady monthly performance. In August, the agency collected $291.9 million, exceeding forecasts by $53.5 million, a remarkable 22.5 percent over expectations. September continued this favorable trend with $290.9 million in net revenue, surpassing monthly estimates by $8.6 million or 3.1 percent. October saw an upward spike in revenue to $300 million, which was $24 million, or 8.7 percent, higher than forecasted. Likewise, November’s net revenue reached $286.5 million, exceeding expectations by $18.9 million, or 7.1 percent.

All major tax categories, including Value Added Tax (VAT), Income Tax, and Trade and Customs taxes, have shown significant success. FRCS’s CEO, Udit Singh, credited the robust revenue figures to strong performances across key economic sectors as well as the implementation of compliance initiatives. He emphasized that the sustained performance over the past four months reflects a thriving business environment, supported by the resurgence of the tourism sector.

Additionally, increased income tax revenues from higher business turnover and profitability, combined with a substantial rise in VAT collections driven by heightened consumer demand, have also contributed to this success. Singh highlighted ongoing initiatives aimed at improving tax compliance, including the VAT Compliance Drive and educational programs, which have enhanced taxpayer understanding and participation.

Looking ahead, Singh expressed optimism about maintaining this positive revenue trajectory through December 2024 and beyond, suggesting that if this trend continues, it could pave the way for stronger economic stability and growth in Fiji.

In summary, FRCS’s outstanding revenue performance not only marks a recovery but also showcases the resilience of the Fijian economy, hinting at a prosperous future as commercial activity flourishes across various sectors.


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