FRCS Surpasses Revenue Target in the First Four Months
The Fiji Revenue and Customs Service (FRCS) has reported a net revenue collection totaling $1.169b at the end of the first four months of the 2024-2025 fiscal year, exceeding its forecast by $105.0m (9.9%) and reflecting an increase of $178.0m (18.0%) compared to the same period last year.
The positive outcomes stem from the consistent monthly performances. In August, collections stood at $291.9m, exceeding the forecast by $53.5m (22.5%). The strong performance set a positive tone for the months that followed. September continued this trend with a net revenue of $290.9m, surpassing the monthly forecast by $8.6m (3.1%). In October, revenue collection surged to $300.0m, representing a significant positive variance of $24.0m (8.7%) against the forecast. Additionally, in November, net revenue collection was $286.5 million, surpassing forecasts by $18.9m (7.1%). All major tax types including the Value Added Tax (VAT), Income Tax and Trade & Customs taxes have performed extremely well.
FRCS CEO, Mr. Udit Singh, credited the positive cumulative collections to the robust and strong performances across the key sectors of the economy as well FRCS compliance initiatives.
The strong performance observed over the past four months signals widespread commercial activity across all sectors. The growth in the services sector, particularly driven by increased activity in tourism, has played a significant role. Increased income tax payments resulting from improved business turnover and profitability, along with a substantial increase in VAT collections spurred by rising consumer demand, have also been pivotal, said Mr. Singh. Mr. Singh added that the ongoing strong revenue performance is also a result of improved compliance activities such as the VAT Compliance Drive and the positive contributions of the intense awareness and education programs along with the set-up of the new Post Assessment Verification Unit.
Looking ahead, Mr. Singh is optimistic that revenue projections for December 2024 and the other months will continue a similar trajectory.
Last Updated - December 13, 2024