The Fiji Revenue and Customs Service has announced that cooperatives utilizing mechanical harvesters will be exempt from Value Added Tax (VAT) as per the 2025-2026 National Budget Summary of Revenue Policies. This incentive aims to encourage sugar cane farmers to join cooperatives, thereby allowing them to save on harvesting costs through the zero-rated VAT.
In 2023, the sugar industry registered 53 operating cooperatives, with 48 of those cooperatives owning mechanical harvesters. A total of 1,436 growers were members of these cooperatives. The move aligns well with ongoing government efforts to bolster the sugar industry and support farmers in enhancing their productivity and financial stability.
Previously, the government has taken significant steps to support sugar cane farmers, such as announcing payments for those increasing their productivity and providing financial relief to farmers facing the challenges of manual labor in harvesting. These combined efforts reflect a proactive approach to securing the livelihood of farmers, fostering resilience, and laying the groundwork for a hopeful and sustainable future for Fiji’s sugar industry.
The collaboration between government initiatives and farmers exemplifies a commitment to overcoming challenges and promoting a thriving agricultural sector. With the encouragement of mechanization and cooperative farming, Fiji’s sugar cane industry is poised for a positive transformation that could lead to greater efficiency and profitability for its farmers.
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