The Fiji Revenue and Customs Service (FRCS) in collaboration with the Fijian Competition and Consumer Commission (FCCC) has formed a Price Surveillance Taskforce and the two organisations have intensified inspections and are closely monitoring the market to ensure that the changes in the VAT (Value Added Tax) rates and customs duties announced in the 2023/2024 National Budget are reflected correctly in the final prices and consumer interests are protected.

Effective from 1^st August 2023, the three VAT rates have been replaced with a simplified two VAT rate system. The 9% VAT has increased to 15% while the 0% VAT rate has been maintained. The 21 zero-rated VAT items have been increased to 22 items with the addition of prescription medicine and prescription drugs.

Additionally, import duties have been reduced on sheep and lamb meat, prawns, ducks, corned meat of lamb, sheep and beef, canned mackerel, canned tomatoes and chicken portions.

The FRCS team have also been conducting analysis of shipping and other related costs to verify the pattern of price changes.

FRCS Chief of Staff, Mr. Shavindra Nath stated that it is important to ensure that the intention of the budget policies announced by the government is achieved.

“When taxes or duties are reduced, the intent is to reduce the prices of these products and promote consumer choices. If the prices are not reduced, then it defeats the purpose of these changes. That is why it is critical for agencies such as FRCS and FCCC to monitor that these changes are correctly reflected in the prices,” Mr. Nath said.

“The VAT zero rating has been maintained and in fact, increased with the inclusion of prescribed medicine and drugs and the increase in VAT from 9% to 15% should not impact the prices of these zero-rated items,” he said.

“FRCS is aware that a large majority of retailers wish to comply with the law, and we are willing to help and guide them so that they can implement these changes correctly. However, instances of deliberate non-compliance will be dealt with strongly.”

“Cost of living is a matter that resonates deeply within our communities. It’s not just an economic issue; it’s a fundamental aspect of daily life that affects families across Fiji. The collaboration between FCCC and FRCS on Price Surveillance is more than a regulatory step; it’s an initiative aimed at safeguarding the welfare of our citizens,” said FCCC CEO, Joel Abraham.

“The new VAT system and duty reductions should make essential goods more affordable. We’re committed to ensuring these changes are accurately reflected in market prices, and any non-compliance will be met with decisive action.

Together with FRCS, we are working to ensure the government’s intentions become real benefits for our people, focusing not just on compliance but on enhancing their quality of life.”

The Fiji Revenue and Customs Service (FRCS) has announced the appointment of two new members to its Board of Directors, Ms. Nancy Tikoisuva and Dr. Neelesh Gounder. Ms. Tikoisuva and Dr. Gounder have been appointed in accordance with Section 4 of the FRCS Act 1998 for 3 years effective from 25^th July 2023.

FRCS’s Acting Chief Executive Officer, Malakai Naiyaga welcomed the highly talented individuals to the Board of Directors of FRCS.

“The new Board of Directors have valuable expertise and perspectives that will help provide effective strategic direction and oversight to FRCS,” Mr Naiyaga said.  The appointments are also reflective of youth, energy and balance which are required to support the processes and services transformation tasks FRCS is undertaking.

Ms. Tikoisuva is a Legal Practitioner with the law firm, Toganivalu Legal and simultaneously works as an External Academic with the University of the South Pacific (USP) and as a National Consultant with the Food Agricultural Organisation (FAO).

She obtained her Bachelor of Law (LLB) in 2003, Masters in Law (LLM) in 2022 from USP and was admitted to the bar in 2004.  Ms. Tikoisuva has 18 years of legal experience. She has served in the area of prosecution, specializing in serious financial crimes, money laundering and asset forfeiture as well as in private legal practice in civil litigation. Ms. Tikoisuva also conducts community legal awareness in child and environmental protection and domestic violence.

Additionally, Ms. Tikoisuva is a Board Director with the Maritime Safety Authority of Fiji and Leadership Fiji.

“I thank the Fijian Government for the opportunity to serve on the Board. It is a huge responsibility that I will not take lightly, and I hope to do justice to this position,” Ms. Tikoisuva said.

Dr Gounder is a Senior Lecturer in Economics and the Deputy Head of School (Research, Innovation and Postgraduate Affairs) with the School of Accounting, Finance and Economics at USP. He has a Ph.D. in Economics from the Griffith University in Australia. Dr. Gounder is also a Centre Associate at the Development Policy Centre, Crawford School of Public Policy at the Australian National University.

He was one of the members of the Fiscal Review Committee appointed by the Fiji Government to review the government’s revenue and expenditure strategies and policies and to provide recommendations for strengthening the fiscal framework.

“I thank the Minister for Finance for this appointment and look forward to contributing to the important work of the FRCS Board,” Dr Gounder said.

The Fiji Revenue and Customs Service (FRCS) has collected a net revenue of $190m for November 2022, exceeding the month’s forecast by $7.9m or 4.3%. This represents a higher collection of $79m in comparison to the revenue collections of November 2021.

Four months into the current fiscal year, FRCS has recorded a total collection of $767.2m with a positive variance of $22.1m over the cumulative forecast.

Comparative to the four months of last financial year, we have recorded an impressive growth of $330.3m or 76%

FRCS CEO Mr. Mark Dixon attributed the considerable increase in revenue to the impressive rebound of the economy with all key sectors showing a resurgence.

“The remarkable increase in revenue collection against last year by 76% as well as against our forecast exhibits the consistent recovery and economic growth across all key sectors of the economy.,” Mr. Dixon stated.

He added that the favorable collection is linked to a strong recovery across the major tax streams including the Value Added Tax, Income Tax and Customs Taxes.

The positive revenue collection for November 2022 is attributed to the following tax types:

• PAYE (Pay As You Earn) Tax recorded an increase of $3.4m indicating improvement in the labor market, both in the formal and informal sectors.
• Corporate Income Tax (CIT) surged by $11.3m compared to November 2021 showing growth in business confidence and improvement in the investment environment.
• Domestic VAT recorded a growth of $26.1m stemming from increased disposable incomes, inward remittances, and higher tourism-related spending.
• Increase in trade volume attributed to the $22.7m increase in Import VAT
• As we celebrate the first anniversary of the re-opening of the international border, the Departure tax collections have been very symmetrical to tourist arrivals. Four months into the 2022-2023 fiscal year, we have collected $19.8m, while collection for the same period last year stood at $0.3m.

FRCS envisages that the revenue projections for future months will continue in a similar trajectory

The Fiji Revenue and Customs Service (FRCS) monthly revenue collection continues to strengthen as the forecast has been surpassed for a second consecutive month. The strong collection has been attributed to the recovery of the tourism sector along with other key industries.

Net revenue for September recorded a total collection of $199.9m, which is above the month’s forecast by $4.7m or 2.4%. The collection is substantially higher by $78.1m in comparison to September 2021. It is also higher than the August 2022 collections by almost $9m.

According to FRCS CEO Mr. Mark Dixon, the considerable growth in revenue against last year September collections as well as against the forecast is showing resilience in the economy through the demonstration of strong recovery and growth.

The positive revenue collection for the month is attributed to significant improvement against September 2021 in the following tax types:

• Corporate Income Tax surged by $12.5m compared to September 2021 showing increased business confidence and a positive revenue outlook.
• Domestic VAT recorded growth by $24.1m revealing an increase in domestic economic activity along with the recovery of the tourism sector.
• Import VAT and fiscal duty increased by $26.2m and $5.9m respectively. This is attributed to an increase in the volume and the value of imports.
• Airport Departure Tax increased by $6.1m. The growth is attributed to the opening of international borders and travel to Fiji.

Mr. Dixon said that all these taxes are activity based and all of them are showing an upward trend.  He added that a similar trajectory is expected to continue as we head into the festive season in anticipation of increased imports, spending and consumption.

Meanwhile, revenue collections were not the only thing that kept us busy.

As part of our corporate social responsibility (CSR) activity, our Sports and Social Club members and their families cleaned the Savusavu Special School and the Nasavusavu District school last weekend.

“The corporate social responsibility activity at the schools in Savusavu was an excellent initiative by our team to do social good and give back to our community,” Mr. Dixon said.

“People often see us behind the counters collecting money but our CSR efforts show that we are also active in our communities, serving the Fijians and aspiring to bring about change.”

Mr. Dixon said FRCS will be undertaking more CSR initiatives in the coming months.

The Fiji Detector Dog Unit (FDDU) held an open day today for female officers from the Fiji Revenue and Customs Service (FRCS) and the Fiji Police Force to seek their interest in becoming K-9 handlers.
This year marks the 6th anniversary of FDDU and they have been instrumental in drug, undeclared currency and firearms and ammunition seizures. The Unit is currently male dominated, however, its leadership would like to advance the Unit with the inclusion of female officers.
Applauding the initiative, FRCS CEO Mr. Mark Dixon encouraged female officers from FRCS and the Fiji Police to join they FDDU.
“This is an excellent opportunity for our female officers to consider a future career as a detector dog handler – breaking down barriers, changing mind-sets and proving that there is absolutely no job in border enforcement that women cannot do just as well as men. It will open up additional avenues for women in our border agencies and enhance our capability in this critical area that helps keep Fiji safe” Mr. Dixon said.
“I am certain that our female officers will be just as successful in the K-9 field as their male counterparts.”
Representing the Fiji Police Force was the Director Human Resource Manager Senior Superintendent of Police (SSP) Meli Sateki said, “The FDDU’s K-9 capabilities, through the support of the New Zealand Police continues to be strengthened and it is an exciting time to be part of the Unit and we do hope that this open day will encourage more women officers to join the Unit”.
The Open Day programme included presentations on requirements for being a K-9 handler, trainings involved, success stories of FDDU, a walkthrough of the kennel and demonstration with K-9.

The Fiji Revenue and Customs Service (FRCS) would like to advise Fijians that the Service does not request payments through social media or messaging apps such as Viber and WhatsApp.

FRCS has received reports of  people impersonating Customs Officers and requesting customs clearance payments through social media or messaging apps.

We wish to clarify that FRCS payments are only made to cashiers at FRCS Offices, online or through FRCS bank accounts. Additionally, FRCS only uses its social media platforms for education and awareness or to enhance the Organisation’s visibility.

Fijians should report to FRCS on 3243000 or 1326 or info@frcs.org.fj if they receive requests for any payment, including payment of taxes, duties or levies through social media or messaging apps. They should also request for copies of relevant documentation or reference numbers from those requesting payments for verification with FRCS.

FRCS is concerned about scammers impersonating FRCS Officers and swindling money out of Fijians.  The penalty for the unlawful assumption of character of a FRCS Officer is a fine not exceeding $25,000 or imprisonment for a term not exceeding 10 years, or both.

We wish to advise all Fijians to be vigilant and avoid becoming prey to such fraudulent activities.

The Fiji Revenue and Customs Service (FRCS) Officers have intercepted yet another consignment of goods countering attempts of customs duty fraud.

While reviewing the import documents, FRCS Officers found anomalies indicating undeclared goods and upon physical inspection, two cartons of cigarettes and several highly dutiable undeclared goods were discovered. Undeclared goods included new tyres, sofa, sports equipment, food items, printer, vehicle accessories, cosmetics and electrical goods, etc.  

FRCS CEO Mr. Mark Dixon stated that the Service promoted voluntary compliance and trusted the importers and customs agents to accurately report the type, value, and country of origin for the merchandise they bring into the country for which the right amount of duty must be paid.  

However, Mr. Dixon said FRCS will not condone customs fraud as this deprives the Fijian Government of revenue through customs duties and taxes that would otherwise be used to fund vital public services such as schools, hospitals and infrastructure.  

“Additionally, the fraudulent companies also gain a competitive advantage over honest traders by having lower importation costs for their products yet selling at the same prices,” he said.

Customs Agents and Brokers are also reminded to accurately declare all import items on the invoices as an incorrect declaration can be liable to penalties and imposition of further stringent measures.

Last year alone, FRCS either intercepted, detained or seized more than 1330 different goods at the border.

Mr. Dixon has encouraged importers to contact the FRCS team at 324300 or 1326 or email at info@frcs.org.fj for any assistance or clarification.

The 2022/2023 fiscal year started on a very positive note with the Fiji Revenue and Customs Service (FRCS) collecting a net revenue of $190.2m in August 2022. We have outperformed the forecast for the month by $12.9m or 7.3 percent and August 2021 collections by a considerable $105.8m or 125.3%.

FRCS CEO, Mr. Mark Dixon attributed the strong revenue performance to Fiji’s current conducive economic environment.

“A little over 12 months ago, Fiji was experiencing its third wave of COVID-19 infections that led to a massive drop in revenue collections. The comparatives against the tax performance for the same period last year looks very promising and perfectly shows how tax revenue has recovered much faster than earlier anticipated,” Mr. Dixon stated.

Consumption taxes such as Domestic VAT (+$43.6m), Import VAT (+$24.5m) and Fiscal Duty (+$10.6m) recorded an average increase of 132.3%. Furthermore, Company Tax (+$6.9m or 51%), Departure Tax (+$6.2m or 6890%), Withholding Tax (+$4.3m or 102%), Domestic Excise Duty (+$3.6m or 103%), PAYE Tax (+$3.3m or 34%) and Water Resource Tax (+$2.8m or 48%) all recorded collections higher than August 2021 collections.

Revenue collections are expected to remain strong in the future months.

Mr. Dixon also stated that the outstanding result is a testament to the hard work, innovative thinking and dedication of the FRCS Team.

“The results we’ve achieved in recent months demonstrate the strong momentum we have at FRCS. We are extremely proud of this result and grateful to everyone at FRCS for the role they played in achieving these results.

“I would also like to thank our taxpayers for filing their tax returns and paying their taxes. A large percentage of the tax revenue collected by the FRCS comes in voluntarily from taxpayers and we thank them for this,” Mr. Dixon said.

FRCS now has a new Executive Leadership Team (ELT) led by Mr. Dixon. The executive team comprises of the Chief of Staff Mr. Shavindra Nath, Chief Information Officer Ms. Emily Yalimaiwai, Director Intelligence, Compliance & Investigations Ms. Kelerayani Dawai, Director Border & Head of Customs Revenue Ms. Shelini Kumar, Director Taxation Ms. Momina Beg and Director People Capability and Culture Mr. Ben Chand.

“FRCS is progressing in its transformational change journey and businesses and taxpayers are already seeing the many positive benefits of the changes that we have made,” Mr. Dixon said.

He said the new leadership team will further drive the ongoing transformation at FRCS.

FRCS Executive Leadership Team– from the left are, Chief Information Officer Ms. Emily Yalimaiwai, Chief of Staff Mr. Shavindra Nath, Director Intelligence, Compliance & Investigations Ms Kelerayani Dawai, Chief Executive Officer Mr. Mark Dixon (middle), Director Border & Head of Customs Revenue Ms. Shelini Kumar, Director People Capability & Culture Mr. Ben Chand and Director Taxation Ms. Momina Beg.