Business representatives in Fiji have received reassurance regarding the upcoming rollout of the third phase of the Value-Added Tax Monitoring System (VMS). Udit Singh, Chief Executive of the Fiji Revenue and Customs Services (FRCS), emphasized that careful management will be prioritized to minimize disruptions, particularly for small and medium-sized enterprises (SMEs) that previously experienced difficulties during earlier phases.
Concerns expressed at a recent post-budget forum in Nadi highlighted the significant costs associated with upgrading point-of-sale systems in compliance with VMS requirements. Singh acknowledged these past challenges, stating the agency aims to work collaboratively with the business community to ensure a smoother transition this time around. He noted that the FRCS is developing more affordable solutions, including a low-cost point-of-sale system and a free option available to small businesses.
Deputy Prime Minister and Minister of Finance, Professor Biman Prasad, added his assurance that the VMS rollout will proceed without significant issues, citing the government’s responsiveness to previous SME concerns. He mentioned that while the VAT threshold remains unchanged, the threshold for VMS has been lowered to incorporate more businesses into the compliance framework.
Previously raised worries about the financial burden on SMEs related to the VMS rollout highlight a broader understanding of the economic landscape in Fiji. Moreover, this revised approach aligns with ongoing discussions within the government to modernize tax systems and enhance transparency in business compliance. The collaborative efforts from FRCS and the government signal a positive commitment to fostering a more inclusive economic environment, ensuring that all businesses can adapt and thrive.
These strategic measures not only reflect the government’s dedication to improving business conditions but also showcase an optimistic outlook for future economic resilience. The proactive steps being taken offer a pathway for enhanced compliance while supporting local enterprises, underlining the collaborative spirit essential for navigating present economic challenges.
Leave a comment