Tax on musical works and performances

Listen to this article:

Tax on musical works and performances

VETERAN composer Iliesa Baravilala looks forward to every end of the year because this is when he gets paid for his musical works.

It is during this time that the Fiji Performing Rights Association pays out royalties to artistes.

Songs that he and 750 other composers created, that are broadcast in public places, attract a fee.

This fee is collected by FPRA and paid out to artistes in the last quarter.

But like every other year, along with the small financial windfall that composers receive, comes the disappointment when 15 per cent of the money earned from their creative output is taxed by the Government.

“I just don’t understand how the work that we have done, spent hours creating can be taxed by the Government when we don’t receive any support from them when it comes to the challenges we face every day,” the 70-year-old Lautoka resident shared.

“I had $300 deducted from my royalty earnings and this is money that I need to help my family and also to help me to continue to write my music.”

Baravilala is renowned in iTaukei music circles as “the man who writes the hits”.

He has been the mentor and creative genius behind the success of artistes such as Levuka crooner Jimmy Subhaydas, iTaukei music’s biggest success story Lagani Rabukawaqa, Nadroga music queen Mili Vosailagi and a whole host of others.

In total he has composed more than 500 songs over the past 44 years and continues to write music today.

His latest prodigy is 13-year-old child music star Mosese Baledrokadroka.

The Delana School Year 8 student has proven to be a huge hit in iTaukei music circles — with recent performances at Prince Charles Park during celebrations to mark the Fiji Sevens side’s gold medal win in Rio and Fiji Day — winning wide acclaim.

He said that despite his musical prodigies having huge hits over the past four decades, the financial benefits have not been realised either by himself as the composer or them as artistes.

“And you would think that instead of burdening composers with taxes like this, Government would have removed it to allow us to develop our song-writing and composing,” Baravilala said.

“I also know that performing artistes also have to pay this tax when they perform at hotels and special events.

“Government should consider that musicians don’t earn a regular income and when they get an opportunity to perform it is a big thing for their families.

“I ask them to come out to the Western Division and visit the homes of composers and musicians. They do not live in good homes and many do not even own their homes, in fact a lot of them live in poverty and struggle every day just to put food in the mouths of their children, educate them and give them shelter.”

Fiji’s vude king, veteran composer and FPRA executive Seru Serevi said the issue had been raised with numerous administrations over the years.

“That tax has always been there,” he said.

“And we have been advocating over the past few decades from Ratu Sir Kamisese Mara’s time to have this tax removed, but we have never been successful,” he said.

“At the moment, artistes can come to our office and get a form to reclaim the 15 per cent tax if their income is below the $16,000 income tax threshold.

“Composers who earn above the threshold have no other option but to pay the tax and that is unfortunate because it is discouraging artistes from composing new music and it needs to be relooked at.”

Serevi added that about 7500 were affected by the imposition of the tax and other issues related to the industry.

“We have about 750 composers under the banner of FPRA and each of these composers support up to 10 people in their family and extended family and this needs to be taken into account.

“But this figure does not capture the musicians who perform on a regular basis in hotels, restaurants, bars and at special events.

“People ask me all the time why I have not put out a lot of new music and I always give them the whole picture — I’m not alone on this issue.

“Almost every artiste has the same story, they have songs because creativity never stops.

“But their biggest fear is piracy and when you add taxes like provisional tax of 15 per cent plus the 9 per cent VAT on basic food items, it makes life very difficult.”

Serevi himself, once a prolific recording artiste with numerous hits in the 1980s and 1990s, shied away from writing and producing new material for more than 25 years.

He only recently began recording again with the release of his 2014 anthem in support of the West Papuan indigenous struggle for autonomy titles Let The Morning Star Rise.

“My story is not unique, it’s the same for many artistes. We just feel let down because our cry for justice has fallen on deaf ears for so long,” Serevi said.

“We have asked for the provisional tax issue to be looked at and we also have asked for the music industry to be given the recognition it justly deserves.

“We are part of Fiji’s business landscape. We contribute to the economy and are part and parcel of the tourism and entertainment industry.”

One of Fiji’s biggest musical groups, Rosiloa (formerly Black Rose) has slowly crept out of the limelight.

The band has taken a hiatus while its members participate in the local music scene in other outfits.

Group leader and founding member Jim Ratusila now makes a living as the bassist and lead singer of Nadi-based group Rubber Band.

Ratusila said the decision for Rosiloa to take a break was reached after the members realised it was economically impossible to keep the group viable.

“The 15 per cent provisional tax on royalties and performances has really hit us hard,” he said.

“When you have a big band with six members like us, it makes it very difficult to survive economically.

“We can’t contemplate stripping the band numbers down because you’re talking about the incomes and livelihoods of families and you’re also talking about compromising the unique sound of the group for the sake of economics.

“Taxing musicians and the musical works we create really doesn’t make any sense at all because we do not hold down regular jobs where our income is paid weekly or fortnightly.

“It really depends on the needs of the people.

“We have been lobbying for Government to recognise us as artistes, as musicians, as composers and as important contributors to Fiji’s economy through our participation in tourism and entertainment.

“And sadly, it hasn’t happened as yet.”

While making his plea for musicians, Ratusila also recognises the need for them to unite in their effort to be recognised.

“We are our own worst enemies.

“Undercutting is a huge issue for us. If one band quotes a certain fee for a gig, another will approach the event organisers and offer to do it for less.

“Unless and until we get together as an industry and have a united voice, no one in the industry is going to take us seriously.

“I hope all musicians take advantage of every opportunity this festive season and we hope that 2017 will be the year we unite under one banner and do what needs to be done to take our industry to another level.”

Questions on the issue of provisional tax on musical works and performances sent to Attorney-General and Minister for Economy, Aiyaz Sayed-Khaiyum on Tuesday remained unanswered when this edition went to press last night.