Partnership to Quantify Economic Benefits
In an effort to collaborate and strengthen partnerships yesterday the Fiji Revenue and Customs Service (FRCS) and the Ministry of Forestry ( MoF) have signed a Memorandum of Agreement ( MoA).
This is to ensure efficient administration of Government’s revenue policies to support economic growth and improving tax compliance in the forestry sector.
The agreement formalises a partnership between the two agencies:
■to collaboratively work together to quantify economic benefits for both parties
■as well as ensuring tax and customs compliance within the industry.
Illegal logging issue
Speaking at the signing, Permanent Secretary for Forestry, Pene Baleinabuli, said that the agreement was a timely one as illegal activities within the Forestry sector was rife and needed to be curbed immediately.
“Activities like illegal logging is a major global problem that not only leaves an obvious mark of destruction on forests and ecosystems.
“But it strips the economic livelihood of local communities, and responsible companies, depriving the nation of much needed revenue,” he said.
According to Mr Baleinabuli: “This agreement will allow the ministry and FRCS to put up safeguards on two fronts – at the border and at its source.
“If we cut off their supply, illegal operators will have no choice but to close down.”
The MoA, amongst other will facilitate:
■i■formatio■ exchange between the two agencies that will be useful in the approval and monitoring of various forestry sector concessions,
■Customs clearance matters relatissues,
ing to timber imports and exports ■a■d more importantly, in the overall tax compliance activities relating to operators in the forestry sector.
FRCS acting chief executive officer, Fane Vave, stated that whilst there was an overall improvement in tax compliance in Fiji, there is no doubt that the black economy such as the exchange of cash in the primary sector is not properly accounted and declared to FRCS. “The MoA will greatly assist FRCS to be fully aware of all the operators who are connected with the forestry sector which will then lead to a development of targeted tax compliance strategies,” Ms Vave said. This is the first of many partnership agreements that the Ministry will be formalising with other Government agencies, statutory bodies, industry stakeholders and the private sector.
The agreement between the Ministry of Forestry and FRCS also extends to information sharing with regards to the import and export of timbers product and machinery, as well as working with stakeholders to grow the economy.