FRCS Surpasses 2022-2023 Fiscal Year Revenue Target

The Fiji Revenue and Customs Service (FRCS) has collected a cumulative net revenue of $2.285b at the closure of the 2022-2023 fiscal year, exceeding the forecast by $33.3m or 1.5%. Total revenue collections also surpassed 2021-2022 fiscal year collections by $592.7m or 35.0%.

The positive out-turn stems from the outstanding July performance, which recorded net revenue of $213.9m with a positive variance of $22.6m or 11.8% against the monthly forecast.

FRCS Acting CEO, Mr. Malakai Naiyaga attributed the favourable cumulative collection to the performance of key tax categories such as Value Added Tax (VAT), which contributed $1.0b or 43.9% towards the total collections, Income taxes, contributed $623.9m or 27.2%, Trade Taxes, contributed $472.7m or 20.6% and Other Taxes & Levies contributed $188.8m or 8.2% of the tax mix.

Additionally, Mr. Naiyaga stated that the revenue achievement mirrors the earlier-than-anticipated overall economic recovery, underpinned by the consistently strong performance in sectors like Services, Wholesale & Retail Trade and Manufacturing.

“The positive variances observed in both the monthly and the annual collection point towards a significant overall economic recovery compared to a year ago. This recovery can be attributed to various factors, such as the services sector benefitting from increased tourism activity, higher income taxes paid by companies based on improved turnover and profits, and the pent-up consumer demand leading to increased VAT collections. These factors collectively contribute to the economic upturn, reflecting a positive trend across different sectors and fiscal aspects of the economy,” Mr. Naiyaga said.

Mr. Naiyaga added that the revenue performance has set a good platform for the new 2023-2024 fiscal year noting the $3.1b revenue target. FRCS will be working in partnership with our stakeholders and taxpayers to continue to develop a national culture of tax and customs compliance. Support will be provided to taxpayers to assist with tax filing and payment in addition to conducting various awareness and stakeholder forums for the 2023-2024 national budget.

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