Jan to June Taxes Collection
Good job, Fiji Revenue and Customs Service! Revenue collections in the first months of 2020 stood at $908.9 million.
Compared to the revised forecast, revenue is above by $124.7million or 15.9 per cent.
The COVID-19 pandemic has affected the tax collections across all types with direct impact on taxes associated with tourism such as Airport Departure Tax, Environment and Climate Adaption Levy (prescribed services) and Service Turnover tax.
Taxes such as Import VAT and Fiscal Duty related to imports have also seen a decline.
So in that context the performance by Fane Vave and her team is definitely deserving of applause
Looks like our Ports were a bit busy
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Looks like the Port of Suva, Lautoka and Port Denarau from January to June have been a bit busy.
But the Port of Lautoka has been busy. It would be even more interesting by the end of the year.
Table 1 above shows the statistics of the vessel type and the total number from January to June.
Stimulus measures
Revenue collection is highly contingent upon the economic activity.
And the Fiji Revenue and Customs Service (FRCS) will administer various stimulus measures especially those that were announced in the 2020/2021 National Budget including advance payment of taxes.
Companies are now required to make advance payments in nine installments at the rate of 11 1/9 per cent instead of monthly payments.
This is to allow ease of payments.
Acting chief executive officer, Fane Vave said:
“FRCS will also continue to roll out its Compliance Improvement Strategy to enhance voluntary compliance through engagement with the business community to educate, raise awareness and achieve general compliance.
“A number of awarenesses with the business associations have already commenced.
“We will also undertake the Compliance Improvement Strategy to undertake audit activities.
“While we are conscious of the current economic climate and will facilitate and assist genuine cases.
“However, we will also take pro- active actions to deal with any tax evasion.
“Through effective consultation with the taxpayers, FRCS debt collection strategy is working well by ensuring that adequate time to pay arrangement is accorded for any genuine tax debts,” she said.
FRCS encourages the business community to take advantage of various incentives and arrangements such as new relaxed rules of advance payment of taxes as mentioned above.
FRCS also requests businesses to reach out to them, if they genuinely face financial difficulties on tax payments.
“We will continue to have effective partnerships with the business community in our collective effort to grow the economy.”