THE 2025-2026 National budget is indicative of support for legitimate businesses while also holding everyone to the same standard, says Fiji Revenue and Customs Services chief executive officer Udit Singh.
Mr Singh was a panelist at a post-budget conference organised by the Nadi Chamber of Commerce and Industry in Nadi on Saturday.
He said the budget takes targeted steps to ease the burden on Fijian families and incentivise business growth.
“VAT has been reduced to 12.5 per cent, effective from August 2025. This puts money back into the hands of consumers, helping to ease cost-of-living pressures,” he said.
“For individuals investing in renewable energy and termite-related home repairs, VAT refunds will now be available, an important support for sustainability and rebuilding resilience.”
Mr Singh said the 300 per cent and 400 per cent employment tax deductions for work placements and hiring persons with disabilities have been extended to 2026 to promote employment and inclusivity.
“There are new incentives for tourism operators, including a 25 per cent investment allowance for non-accommodation tour activities like diving, zip-lining, and nature tours-supporting Fiji’s growing adventure and eco-tourism sectors.”
Mr Singh said on the import side, there is significant tariff relief with duties on chicken portions, salmon, frozen fish, and castor sugar having been reduced.
“Solar-powered vehicles and electric golf carts will now attract zero duty – encouraging greener transport solutions.
Mr Singh said from January 2026, businesses must register e-wallet accounts separately for business transactions, and all mobile wallets will require TINS to ensure digital transactions are not used to mask income.
Similarly, unexplained e-wallet deposits will be included in gross income calculations.
“Sole traders will now have to file annual asset declarations, a move that aligns with best practices and helps identify undeclared wealth.
“The VAT Monitoring System (VMS) threshold has been reduced to $50,000 turnover. This broadens the base and ensures more businesses are reporting sales accurately.”
Mr Singh said the record-keeping periods had been extended from five to seven years, better aligning with audit timelines.
“The Government is also modernising outdated provisions and bringing our tax and customs legislation into line with international norms.
“The definition of ‘dividend’ will be clarified to ensure Capital Gains Tax applies to gains from share buybacks and similar transactions.”
Note: This article was first published on the print version of the Fiji Times dated July 7, 2025
