Fiji Revenue and Customs Service Achieves Historic $3 Billion Revenue Milestone
The Fiji Revenue and Customs Service (FRCS) has achieved a historic milestone by surpassing $3 billion in revenue collections for the fiscal year, 2023-2024. With a final net revenue of $3.1 billion, FRCS has exceeded its forecast by $68 million, representing a 2.3% increase. This marks a remarkable growth of $819 million, or 36%, compared to the previous fiscal year of 2022-2023.
This is the first time FRCS has reached the $3 billion mark. Prior to this achievement, the highest revenue collections were $2.83 billion in the 2017-2018 fiscal year and $2.81 billion in the 2018-2019 fiscal year, the two years before the pandemic.
The most significant revenue growth has come from Value Added Tax (VAT), which now contributes 44% to the total revenue. The increase in VAT collections can be attributed to the growth in the economic activity and the key sectors, higher import volumes, the change in rate from 9% to 15%, and the compliance initiatives by FRCS.
Income taxes including the Corporate Tax and Pay As You Earn and trade taxes such as fiscal duty and domestic excise taxes, all contributed significantly towards the total collection.
In light of this milestone collection, Chief Executive Officer Mr. Udit Singh shared the following remarks, “Surpassing the $3 billion revenue mark is a significant achievement for the Fiji Revenue and Customs Service and a testament to the resilience and growth of key economic sectors in Fiji. Our strong performance is a reflection of the robust recovery and expansion in sectors such as manufacturing, wholesale & retail trade, and accommodation & food services.”
“The impressive increase in VAT collections, supported by the rate adjustment and vibrant economic activity, highlights the success of our efforts in enhancing compliance and ensuring the accurate collection of taxes. We are also seeing a robust performance in income taxes, with both corporate and PAYE collections reflecting a strong economic rebound.”
“Our ongoing commitment to tightening compliance measures and supporting taxpayers has been instrumental in achieving this milestone. We have engaged platforms such as the VAT Monitoring System and other profiling tools to proactively identify non-compliance and address them. We remain dedicated to fostering a transparent and efficient tax system that supports Fiji’s economic growth and development.
“I would also like to express our gratitude to the government for its unwavering support, as well as to our partners, including the Fiji Police Force, Australian Tax Office, Australian Border Force, and New Zealand Police and New Zealand Customs, for their ongoing collaboration. Most importantly, I extend our sincere thanks to all taxpayers who have diligently filed and paid their taxes on time. Last but not least our gratitude goes to our staff across the country for continuing to raise the bar and improve performance. We encourage all taxpayers to contact FRCS for assistance with their tax matters and to ensure continued compliance.”
Last Updated - August 16, 2024