Methodist Church Seeks Tax Exemption: A Call for Change in Fiji’s NGO Laws

The Methodist Church in Fiji and Rotuma plans to request the Fijian Government to exempt non-government organizations (NGOs), including churches, from paying taxes on their income. Lako Yani Management Pte Limited, responsible for managing the church properties for optimal returns, reported a profit of $2.9 million for the 2023 financial year, up from $1.2 million in 2022, marking a $1.7 million increase.

However, the overall income saw a decline, attributed to the reduced earnings from the Navuso Agricultural Technical School, as noted by Ms. Qoro. She emphasized that the Methodist Church’s primary goal is not profit-making but serving its members and fulfilling its mission. Any profits generated are reinvested into the church’s activities.

Changes to tax laws in 2016 began taxing the net income of organizations classified as charities, arguing that their income is earned in competition with for-profit entities, necessitating a level playing field. The Fiscal Review Committee stated last year that such taxation “deprives effective charities of funds which they can effectively use on the ground, particularly in periods of high need.” They further noted that this discourages NGOs from making necessary investments to secure a sustainable source of independent funding.

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