The R.B Patel Group has reported a profit after tax of $10.9 million for the financial year ending June 20, 2022 compared with a profit of $8.5m last year.

The company said in its financial statements released through the South Pacific Stock Exchange that the COVID-19 recovery and improving economic activity levels had provided the impetus for business confidence.

“Since the initial declaration of the pandemic in early 2020, Fiji and many countries including Fiji’s key trading partners have experienced significant challenges.

“The initial impact of the pandemic was felt mainly in the tourism industry and wider impact to many other businesses due to border closure and high level of unemployment.

“This wave of the virus had a severe impact on the domestic economic activities due to restrictions on movement of people and prolonged closure of many businesses on Viti Levu especially in the Lami to Nausori containment zone and continuing international border closure.

“The easing of restrictions together with opening of international borders in late 2021 significantly improved the business conditions and economic outlook for Fiji.”

The company said it would be subjected to corporate income tax of 20 per cent from tax year 2023 as in accordance with Income Tax (Rates of Tax and Levies) (Amendment) (No. 2) Regulations 2022.

“This change in corporate income tax rate is expected to have significant impact with increase in deferred tax liabilities with corresponding reduction in retained earnings.

“Based on the preliminary calculations, the impact is estimated to be in the vicinity of $3.5m.”