In the fiscal year 2023-2024, the Fiji Revenue and Customs Service reported a net revenue collection of $3.1 billion, surpassing its expectations by $68 million, marking a 2.3 percent increase. This result indicates a noteworthy gain of $819 million, or 36 percent, compared to the previous financial year 2022-2023.
The most significant portion of revenue growth has been from Value Added Tax (VAT), which currently accounts for 44 percent of the total revenue. The rise in VAT collections is linked to increased economic activity, higher import volumes, the adjustment of the tax rate from nine to 15 percent, and enhanced compliance initiatives by the Fiji Revenue and Customs Service (FRCS).
Udit Singh, Chief Executive of FRCS, highlighted that exceeding the $3 billion revenue milestone is a considerable achievement for the organization and reflects the resilience and development of key economic sectors in Fiji. He noted that Fiji’s strong financial performance is indicative of the recovery and growth in various sectors, including manufacturing, wholesale and retail trade, and accommodation.
Singh emphasized the importance of their commitment to tightening compliance measures while supporting taxpayers, which has been crucial in reaching this milestone. He reiterated their dedication to establishing a transparent and efficient tax system to bolster Fiji’s economic growth and development. Singh also pointed out that the significant rise in VAT collections, aided by the rate change and lively economic activity, demonstrates the success of their compliance enhancement efforts and the accurate collection of taxes. Furthermore, he mentioned the strong performance in income tax collections, with both corporate and PAYE taxes reflecting a robust economic recovery.