The Levuka Town Council is currently grappling with significant financial difficulties, with outstanding rate arrears surpassing $240,000 as of October. Minister for Finance Esrom Immanuel addressed these issues in Parliament this week, highlighting that most of the arrears are owed by businesses that are concerned about the existing high-rate structure.
To bolster its financial position, the council is stepping up its efforts to recover these arrears. This includes re-engaging legal officers to support enforcement actions aimed at improving collection effectiveness. Mr. Immanuel also mentioned that the Ministry of Finance is partnering with the Ministry of Local Government to assist municipal councils, including Levuka, in refining their systems and financial management practices.
The introduction of a new Financial Management Information System (FMIS) has proven beneficial, strengthening budget controls and allowing for real-time transactions and enhanced audit trails. Additionally, Levuka is experiencing benefits from several tax initiatives and incentives designed to attract investment. These programs include Tax-Free Region Incentives, land subdivision incentives, benefits for the hotel and medical sectors, and duty concessions applicable across various industries.
With these initiatives, there is hope for improved financial health in Levuka, as the town seeks to navigate its current challenges and create a more robust economic environment for its businesses and residents.
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