GOVERNMENT is offering exemption from all duties — including value-added tax and tax holidays — to individuals or entities that want to set up drug rehabilitation centres in Fiji.
Finance Minister Professor Biman Prasad has offered the incentives under the Income Tax (Drug Rehabilitation Centre Incentives) Regulations 2025 which was gazetted on March 31.
All applications to set up such a centre will be vetted by the Ministry of Finance and Fiji Revenue and Customs Service (FRCS).
“The minister or (FRCS) CEO must consider the following matters when determining an application — the requirements for a drug rehabilitation centre in the area concerned, whether the proposed drug rehabilitation centre is of a suitable size and standard for the area, and whether adequate amenities would be provided by the project,” the new regulation states.
However, those granted provisional approval must complete the drug rehabilitation centre within 24 months from the date on which the provisional approval is granted.
The regulation states that for capital investment from $250,000 to $1million, tax exemption will be for a period of five consecutive years.
There will be a seven-year tax holiday for capital investment from $1m to $2m and 13 consecutive years of tax exemption for capital investment of more than $2m.
The final approval for the completion of the drug rehabilitation centre investment will only be given after an inspection by the Ministry of Health.
Numerous calls have been made by NGOs and civil society organisations for the Government to set up drug rehabilitation centres as a result of the growing drug abuse crisis, particularly involving methamphetamine and marijuana.
The Income Tax (Drug Rehabilitation Centre Incentives) Regulations 2025 have been deemed to have come into effect on August 1, 2024.
