The Methodist Church in Fiji and Rotuma is set to submit a proposal to the Fijian Government, requesting an exemption from tax obligations for non-government organizations, including churches.
Lako Yani Management Pte Limited, which oversees the development of church properties to maximize returns, reported a profit of $2.9 million for its 2023 financial year, an increase of $1.7 million from the $1.2 million profit achieved in 2022.
However, despite this profit growth, church income has decreased, reportedly due to a lack of revenue from the Navuso Agricultural Technical School. According to Ms. Qoro, the goal of churches, particularly the Methodist Church, is not to generate profit but to serve their members and carry out the church’s mission work. She emphasized that any profits made are reinvested into the church’s work.
In 2016, changes to tax laws mandated that the net income—such as investment and rental earnings—of organizations classified as charities be taxed, as this income was deemed to be earned in competition with for-profit entities, requiring a level playing field.
The Fiscal Review Committee noted in a statement last year that this policy hinders effective charities from accessing funds that are vital during times of increased need. They also indicated that such taxation discourages NGOs from making necessary investments to secure a reliable and sustainable source of independent funding.