In the fiscal year 2023-2024, the Fiji Revenue and Customs Service (FRCS) achieved a net revenue of $3.1 billion, surpassing its projection by $68 million, which constitutes a 2.3 percent increase. This represents a substantial growth of $819 million or 36 percent compared to the previous fiscal year 2022-2023.
The most considerable revenue increase has been from the Value Added Tax (VAT), now accounting for 44 percent of the total revenue. The rise in VAT collections is linked to growing economic activity, increased import volumes, a change in the VAT rate from nine to 15 percent, and the compliance initiatives implemented by FRCS.
FRCS Chief Executive Udit Singh described surpassing the $3 billion revenue mark as a significant achievement that underscores the resilience and growth of critical economic sectors in Fiji. He noted that this strong performance reflects the robust recovery and growth in areas such as manufacturing, wholesale and retail trade, and accommodation.
Singh emphasized that their ongoing commitment to enhancing compliance measures while assisting taxpayers has been vital in reaching this milestone. He reiterated their dedication to maintaining a transparent and efficient tax system that promotes economic growth and development in Fiji.
He further remarked that the notable rise in VAT collections, driven by the rate adjustment and bustling economic activity, demonstrates the effectiveness of their compliance efforts and accurate tax collection. Additionally, there has been strong performance in income taxes, with significant increases in both corporate and PAYE collections, indicating a solid economic rebound.