In the fiscal year 2023-2024, the Fiji Revenue and Customs Service reported a net revenue collection of $3.1 billion, surpassing its projection by $68 million, which represents a 2.3 percent increase. This achievement highlights a substantial growth of $819 million, or 36 percent, in comparison to the 2022-2023 fiscal year.
The most notable increase in revenue has been attributed to Value Added Tax (VAT), which now accounts for 44 percent of the total revenue collected. The rise in VAT revenues is linked to several factors, including heightened economic activities, increased import volumes, an adjustment in the VAT rate from nine to 15 percent, and enhanced compliance efforts by the Fiji Revenue and Customs Service.
Udit Singh, Chief Executive of the FRCS, remarked that exceeding the $3 billion revenue threshold is a significant milestone for the agency and reflects the resilience and growth within critical economic sectors in Fiji. He pointed out that the strong fiscal performance serves as an indication of the robust recovery and expansion occurring in sectors like manufacturing, wholesale, retail trade, and accommodation.
Singh emphasized that the organization’s ongoing commitment to strengthening compliance measures and providing support to taxpayers has played a crucial role in achieving this success. He reaffirmed their dedication to nurturing a transparent and efficient tax system that bolsters Fiji’s economic growth and development.
He further noted that the remarkable growth in VAT collections, driven by the rate change and active economic engagement, showcases the efficacy of their compliance initiatives and accurate tax collection practices. Additionally, Singh highlighted the strong performance in income taxes, with both corporate and Pay As You Earn (PAYE) tax collections reflecting a significant economic rebound.