In the fiscal year 2023-2024, the Fiji Revenue and Customs Service reported a net revenue collection of $3.1 billion, surpassing its initial projections by $68 million, marking a growth of 2.3 percent. This represents a substantial increase of $819 million, or 36 percent, from the previous fiscal year 2022-2023.
The primary driver of this revenue growth has been the Value Added Tax (VAT), which accounts for 44 percent of the total revenue. The rise in VAT collections is linked to an uptick in economic activities across key sectors, higher import volumes, an increase in the VAT rate from nine to 15 percent, and enforcement of compliance initiatives by the Fiji Revenue and Customs Service.
Udit Singh, Chief Executive of FRCS, highlighted that exceeding the $3 billion revenue threshold is a major milestone for the organization and reflects the resilience and growth of critical economic sectors in Fiji. Singh noted that the nation’s strong performance mirrors a robust recovery and expansion in areas such as manufacturing, wholesale and retail trade, and accommodation services.
He emphasized that the commitment to tightening compliance measures and aiding taxpayers has been crucial to achieving this success. Singh affirmed the organization’s dedication to maintaining a transparent and efficient tax system that bolsters Fiji’s economic growth and development.
Furthermore, he pointed out the noteworthy increase in VAT collections, which, supported by the rate change and vigorous economic activity, signifies the effectiveness of their compliance enhancement efforts. Additionally, strong performance in income tax, including corporate and PAYE collections, illustrates the significant economic rebound being experienced.