Opposition Leader Ratu Naiqama Lalabalavu says “some strange figures for revenue exist” in the 2021- 2022 National Budget and one of the biggest question  marks was around the projected revenue for capital gains tax.

“For instance, in the 2019-2020 financial year, the total capital gains tax collected was at around $19 million,” he said.

“The projected revenue for 2021-2022 is stated to be $25 million – 131 per cent of the 2019-2020 financial year.

“I find this projection very strange when the real estate market remains extremely subdued.”

Ratu Naiqama said as per Reserve Bank of Fiji data, real estate activities declined substantially up to March 2021.

“It stated that in the year up to March 2021, commercial banks’ new lending for investment purposes declined by 25.8 per cent and lending to both the real estate and building sectors declined by 31.3 per cent and 11.5 per cent respectively.

“Similarly, in 2020, the value of work put in place fell by 24.8 per cent.

“With such declines observed in construction activities and significant loss in economic confidence in the last three years, how can the projected capital gains tax of $25 million be realised?”