The Fiji Revenue and Customs Service says it is targeting the recovery of approximately $540 million in outstanding government revenue arrears over the next three years as it intensifies enforcement against high-value non-compliant taxpayers.
In its submission to the Standing Committee on Economic Affairs, FRCS revealed that total government revenue arrears currently stand at nearly $1 billion, with Income Tax and VAT arrears alone amounting to $238 million.
FRCS said it collected $151.6 million in cash recoveries during the 2023–2024 financial year, excluding credit offsets.
The revenue authority said its strategic objective was to maintain debt levels at no more than seven per cent of total revenue collected by 2027.
“To achieve this, we are targeting an average debt reduction of $15 million per month, subject to review as debt levels change,” FRCS stated.
“Over the next three years, this equates to a realistic collection target of approximately $540 million, combining cash recoveries and credit offsets.”
FRCS said it uses a graduated enforcement strategy against non-compliant taxpayers, beginning with repayment arrangements before escalating to legal action where necessary.
Measures include structured time-to-pay arrangements, garnishee orders allowing direct recovery from bank accounts, and placing charges on taxpayer properties.
The authority also issues Debt Prohibition Orders to prevent the disposal of assets and has pursued court action to recover outstanding debts.
“In FY 2023–2024, FRCS successfully sold two properties to recover outstanding debt,” the submission stated.
FRCS said debts considered unrecoverable after extensive enforcement efforts are profiled for write-offs so resources can focus on viable recoveries.
The authority said its approach aimed to balance strong enforcement against deliberate non-compliance while supporting taxpayers facing genuine financial hardship.
