The Fiji Commerce and Employers Federation (FCEF) has welcomed the 2026-2027 National Budget, describing it as a fair and responsible package that balances the country’s limited fiscal space with the need to support economic recovery amid the ongoing fuel crisis.
FCEF Chief Executive Officer Edward Bernad said the budget was not a typical pre-election budget but instead focused on targeted measures to assist key sectors of the economy, vulnerable communities and the private sector.
He said the decision not to increase corporate tax, the emphasis on productivity-linked wages and the partial reinstatement of the employers’ training levy demonstrated the Government’s commitment to supporting businesses.
“The budget is not a typical election budget but instead provides targeted support to key sectors of the economy and vulnerable members of society,” Mr Bernad said.
Among the key measures welcomed by the business community is the extension of fuel duty exemptions for eligible hotels, mining operations and manufacturers, as well as the continuation of diesel duty concessions for bus operators, shipping services, Energy Fiji Limited, manufacturers, mining companies and qualifying hotels until October 31, 2026.
FCEF also welcomed the temporary reduction in mandatory employer Fiji National Provident Fund (FNPF) contributions from 10 per cent to 8 per cent between August 1, 2026 and July 31, 2027.
The Federation said the measure is expected to deliver around $100 million in savings to businesses, supporting employment, investment and business recovery. Employers who voluntarily contribute above the mandatory rate, up to 10 per cent, will also qualify for a 150 per cent tax deduction on the additional contribution.
Mr Bernad said the budget also delivers significant customs tariff reductions, including lower duties on selected construction materials, flavoured milk, plant-based food preparations and passenger vans.
The Federation welcomed increased investment in workforce development through a rise in funding for the Training Grant Scheme from $2.5 million to approximately $15 million, together with new incentives for businesses establishing training centres and extended tax deductions for apprenticeships, work placements, part-time employment and employing persons with disabilities.
FCEF also praised targeted investment incentives, including tax holidays for new cement and mahogany sawmill developments, as well as joint ventures involving at least 30 per cent iTaukei ownership in eco-tourism, culture and arts projects.
The Federation further welcomed new measures aimed at improving access to finance, including tax incentives for peer-to-peer lending and equity crowdfunding platforms, tax exemptions for investors and continued capital gains tax concessions under the Access to Business Funding Act.
Mr Bernad said FCEF looks forward to working closely with Government to ensure the budget measures translate into tangible benefits for businesses, workers and communities throughout Fiji.
