IMF, FRCS and MOF Collaborate on Tax Expenditure Evaluation

As part of its two-week technical mission from 31 March to 11 April 2025 on tax expenditure costing and evaluation, the International Monetary Fund (IMF) Mission team conducted a comprehensive two-day workshop with the teams from FRCS and Ministry of Finance (MOF) to share their findings on Tax Expenditure (TE).

Held at the FRCS headquarters in Nasese, Suva, the workshop featured in-depth discussions on key areas of tax expenditure, including Value Added Tax (VAT), Customs and Excise Tax, Corporate Income Tax (CIT), and Personal Income Tax (PIT). This event served as a valuable platform for exchanging insights and promoting a deeper understanding of these critical fiscal matters.

Tax expenditure reporting refers to the process of identifying and accounting for the fiscal impact of government support provided through the tax system. While direct expenditure policies are typically well-documented in national budgets, comparable transparency is often lacking for tax-related support measures.

TE reporting addresses this gap by enhancing fiscal transparency and supporting more effective policy evaluation. It enables both the government and the public to better understand which sectors or activities are receiving support through tax provisions, offering a clearer view of fiscal policy priorities. Furthermore, it serves as a crucial starting point for assessing the effectiveness of current policies and informing potential reforms.

Last Updated - June 10, 2025