In the fiscal year 2023-2024, the Fiji Revenue and Customs Service reported a net revenue collection of $3.1 billion, surpassing its projections by $68 million, which indicates a growth of 2.3 percent. This represents an impressive increase of $819 million, or 36 percent, when compared to the previous fiscal year 2022-2023.
The primary contributor to this revenue growth has been the Value Added Tax (VAT), which now accounts for 44 percent of the total revenue. The rise in VAT collections is linked to several factors, including increased economic activity, higher import volumes, a tax rate adjustment from nine to 15 percent, and the compliance initiatives implemented by the Fiji Revenue and Customs Service.
Udit Singh, the Chief Executive of FRCS, emphasized that exceeding the $3 billion revenue milestone is a significant accomplishment for the organization and reflects the robust growth of key economic sectors in Fiji. He pointed out that this strong performance indicates the recovery and expansion in industries such as manufacturing, wholesale, retail trade, and accommodation.
Singh further stated, “Our ongoing commitment to tightening compliance measures and supporting taxpayers has been instrumental in achieving this milestone. We remain dedicated to fostering a transparent and efficient tax system that supports Fiji’s economic growth and development.” He also noted that the substantial rise in VAT collections, alongside the rate adjustment and active economic engagement, underscores the success of their compliance enhancement efforts and accurate tax collection. Additionally, there is a notable increase in income tax collections, with both corporate and PAYE tax reflecting a robust economic recovery.