During the fiscal year 2023-2024, the Fiji Revenue and Customs Service reported net revenue collections of $3.1 billion, exceeding its anticipated target by $68 million, marking a 2.3 percent increase. This figure represents a significant growth of $819 million, or 36 percent, compared to the previous year, 2022-2023.
The largest segment of revenue growth came from Value Added Tax (VAT), which now accounts for 44 percent of the total revenue collected. The rise in VAT collections can be linked to several factors, including an uptick in economic activity across key sectors, an increase in import volumes, an adjustment of the VAT rate from nine to 15 percent, and ongoing compliance initiatives by the Fiji Revenue and Customs Service.
Udit Singh, Chief Executive of FRCS, described the achievement of surpassing the $3 billion revenue threshold as significant and indicative of the resilience and growth within vital economic sectors in Fiji. He noted that the strong financial performance is a result of a robust recovery and expansion seen in manufacturing, wholesale and retail trade, and the accommodation sector.
Singh emphasized the importance of their commitment to tightening compliance measures while also supporting taxpayers as central to reaching this milestone. He reiterated the agency’s dedication to creating a transparent and efficient tax system that promotes Fiji’s economic growth and development. Additionally, he highlighted the strong performance in income taxes, including both corporate and PAYE collections, which further showcases the economic rebound.