The decision for the application of the 5 percent Tourism Services Tax to bookings made on or after 1st September restores fairness for visitors who planned their holiday in good faith, and it removes a real source of confusion and the higher risk of booking cancellations for the industry.
This has been highlighted by the Fiji Hotel and Tourism Association as it welcomes the Government's confirmation.
Association CEO Fantasha Lockington says this is the outcome the Association has been asking for since consultations began after the announcement of the tax, and it removes the risk that visitors who booked and paid for a Fiji holiday months ago would face an unexpected charge on arrival.
She says this is a genuinely welcome result, and the right one.
Lockington says they also acknowledge the Government’s advised commitment to listening to industry and working collaboratively on policies that support sustainable economic growth.
She says the Association is awaiting the updated Standard Interpretation Guidelines and further guidance from the Fiji Revenue and Customs Service, which will be issued ahead of 1st September.
Lockington says the guidance will provide clarity on the scope and correct application of the new tax rules.
Lockington adds that members still need clear and practical answers before 1st September, and the Association will continue working with FRCS to obtain the necessary guidance.
She says time is running short for tourism operators to load and prepare their systems to support the correct implementation of the tax.
The 5 percent Tourism Services Tax will apply from 1st September to a specific list of tourism businesses with annual turnovers of $2 million and above, covering specific tourism services for a period of 12 months.
