The Fiji Revenue and Customs Service (FRCS) has reported a remarkable net revenue collection of $1.2 billion in the first four months of the current fiscal year, surpassing forecasts by $105 million, which equates to a 9.9 percent increase. This figure represents an increase of $178 million, or 18 percent, when compared to the same period last year.
FRCS highlighted that this positive revenue outcome is largely due to consistent monthly performances. In August, revenue collections reached $291.9 million, exceeding the forecast by a significant $53.5 million, or 22.5 percent. The upward trend continued into September, with a net collection of $290.9 million that surpassed expectations by $8.6 million, or 3.1 percent. In October, revenue surged to $300 million, marking a positive variance of $24 million, or 8.7 percent, while November brought in $286.5 million, also exceeding forecasts by $18.9 million, or 7.1 percent.
All major tax types, including Value Added Tax (VAT), Income Tax, and Trade and Customs taxes, showed exceptional performance. Udit Singh, the FRCS CEO, attributed these impressive cumulative collections to strong performances across key economic sectors, alongside effective compliance initiatives. He noted that the robust activity within the tourism sector played a significant role, with increased income tax payments stemming from improved business turnover and profitability. VAT collections also saw a substantial rise due to heightened consumer demand.
Singh emphasized that the sustained strong revenue performance is also linked to enhanced compliance activities, such as the VAT Compliance Drive, as well as the positive impacts of awareness and education programs, along with the establishment of the new Post Assessment Verification Unit.
Looking ahead, Singh is optimistic that revenue projections for December 2024 and beyond will follow a similar positive trend, reflecting ongoing growth and stability in Fiji’s economy.
This positive revenue collection signals a promising economic climate in Fiji, demonstrating resilience and growth in key sectors, which could lead to enhanced public services and infrastructure investments in the future.
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