Methodist Church in Fiji Seeks Tax Exemption for NGOs: What’s at Stake?

The Methodist Church in Fiji and Rotuma plans to request that the Fijian Government exempt non-government organizations (NGOs), including churches, from income taxation. Lako Yani Management Pte Limited, which oversees the development of church properties, reported a profit of $2.9 million for the 2023 financial year, marking a $1.7 million increase from the $1.2 million net profit in 2022.

However, Ms. Qoro noted a decrease in income, attributed to reduced earnings from the Navuso Agricultural Technical School. She emphasized that the Methodist Church prioritizes serving its community and fulfilling its mission rather than generating profit, asserting that any profits are reinvested into the church’s work.

Changes to tax laws in 2016 mandated that charities be taxed on net income, such as from investments and rental income, claiming this income was generated in competition with for-profit entities. The Fiscal Review Committee highlighted that taxing effective charities reduces their available funds during critical times and discourages NGOs from pursuing sustainable funding sources.

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