The Fiji Revenue and Customs Service (FRCS) has announced a record tax collection of $3.1billion for the 2023-2024 fiscal year, exceeding initial forecast by $68million (2.3 per cent) and breaking the $3b mark for the first time in history.
FRCS chief executive officer Udit Singh said before this achievement, the highest revenue collections were $2.83b in the 2017-2018 fiscal year and $2.81b in the 2018-2019 fiscal year, the two years before the pandemic.
Mr Singh attributed the latest historic feat to robust economic recovery and stronger compliance.
“Surpassing the $3billion revenue mark is a significant achievement for the Fiji Revenue and Customs Service and a testament to the resilience and growth of key economic sectors in Fiji,” he said in a statement issued yesterday by FRCS.
“Our strong performance is a reflection of the robust recovery and expansion in sectors such as manufacturing, wholesale & retail trade, and accommodation & food services.”
Value-added tax (VAT) comprised the biggest component, contributing 44 per cent of total revenue while other components include income taxes (corporate tax and Pay As You Earn) – 30 per cent; Customs tax –17.8 per cent while 8.1 per cent came from other taxes and levies.
The increase in VAT collections was driven by growth in economic activity in key sectors, higher import volumes, the change in VAT rate from nine per cent to 15 per cent, and compliance initiatives by FRCS.
“The impressive increase in VAT collections, supported by the rate adjustment and vibrant economic activity, highlights the success of our effort in enhancing compliance and ensuring the accurate collection of taxes,” Mr Singh said.
“We are also seeing a robust performance in income taxes, with both corporate and PAYE collections reflecting a strong economic rebound.
The 2023-2024 total tax revenue was an increase of 36 per cent or $819m higher than the 2022-2023 fiscal year.
Mr Singh pledged FRCS’ commitment to tightening compliance measures, supporting taxpayers and “fostering a transparent and efficient tax system that supports Fiji’s economic growth and development.”
