In the 2023-2024 fiscal year, the Fiji Revenue and Customs Service reported a net revenue collection of $3.1 billion, surpassing its forecast by $68 million, representing a 2.3 percent increase. This achievement reflects a remarkable growth of $819 million, or 36 percent, compared to the previous fiscal year.
The primary driver of 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 attributed to enhanced economic activity across key sectors, increased import volumes, the adjustment of the VAT rate from nine to fifteen percent, and compliance initiatives implemented by the Fiji Revenue and Customs Service.
Udit Singh, Chief Executive of FRCS, stated that exceeding the $3 billion revenue threshold is a significant milestone for the organization and underscores the resilience and growth of vital economic sectors in Fiji. He noted that the country’s robust performance mirrors the recovery and expansion in sectors such as manufacturing, wholesale, retail trade, and accommodation.
Singh emphasized that the ongoing focus on tightening compliance measures and supporting taxpayers has been crucial in reaching this achievement. He reaffirmed their commitment to maintaining a transparent and efficient tax system that bolsters Fiji’s economic growth and development. The substantial increase in VAT collections, driven by the rate adjustment and active economic engagement, highlights the success of their compliance efforts and the accurate collection of taxes. Additionally, strong performances in income taxes, including both corporate and PAYE collections, demonstrate a significant economic rebound.