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Revenue Collection for FRCS Indicates a Positive Trend

The Fiji Revenue and Customs Service (FRCS) collected a net revenue of $154.0m in January 2022, outperforming the forecast by $9.5m or 6.5percent. The forecast for January 2022 was $144.5m.

This is the second consecutive month where the actual revenue collected by FRCS has surpassed the forecast.  The net revenue collected in December 2021 was $190m compared to the forecast revenue of $130m.

The positive revenue collections against the forecast in December 2021 and January 2022 has led to a cumulative six-month collection (August 2021-January 2022) of $781.5m resulting in a positive variance of $17.4 m or 2.3 percent.

FRCS Chief Executive Officer Mr. Mark Dixon attributed the strong revenue performance to the recommencement of international tourism and its positive spill-over effects, in terms of business confidence, on other sectors of the economy.

“There has been a significant growth in consumption related taxes including Domestic VAT (Value Added Tax), Import VAT, Fiscal Duty and Domestic Excise Duty in January 2022,” Mr. Dixon said.

“Domestic VAT recorded a total collection of $43.9m and is the highest in the past 18 months. This is largely from improved economic activity in December 2021 coupled with the re-opening of the international border and high festivity spending,” he said.

The improved economic activity has also increased demand for imported products thus resulting in high Import VAT and Fiscal duty collections.

Recommencement of international tourism has also seen a substantial increase in the Departure Tax collection. Departure Tax collection in January 2022 was $1.1m compared to the overall collection of $1m in the 2020-2021 fiscal year.

According to Mr. Dixon, given the improved economic conditions, collections are expected to maintain a positive trend.

He said while the last two years have been challenging for the Fijian economy, recent indicators suggest a more positive outlook for 2022. 

 

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