The 2026-2027 National Budget provides much-needed relief for businesses while balancing support for vulnerable Fijians despite the Government's limited fiscal space and the ongoing fuel crisis.
This has been highlighted by the Fiji Commerce and Employers Federation as they welcomed the 2026-2027 National Budget.
FCEF Chief Executive Officer Edward Bernard says the budget is not a typical election budget but instead delivers targeted support to key sectors of the economy while recognising the importance of a strong private sector.
Bernard says this is reflected in the Government's decision not to increase corporate tax, place emphasis on productivity-linked wage considerations and partially reinstate the employers' training levy.
He says businesses will benefit from measures aimed at easing the high cost of doing business, including the extension of fuel duty exemptions for hotels not connected to the Energy Fiji Limited grid, mining operations using fuel for power generation and manufacturers using boilers.
Bernard says diesel duty concessions for bus operators, shipping companies, Energy Fiji Limited, manufacturers, mining operations and eligible hotels generating their own power have also been extended until 31 October 2026.
He adds that the reduction of mandatory employer FNPF contributions from 10 percent to 8 percent from 1 August 2026 to 31 July 2027 is expected to save employers about $100 million, allowing businesses to support recovery, create jobs and invest.
Bernard says employers who voluntarily contribute above the mandatory 8 percent rate, up to 10 percent, will also qualify for a 150 percent tax deduction on the additional contribution.
The FCEF CEO says businesses across several sectors will also benefit from lower customs tariffs, with duties on aluminium structures and PVC boards reduced from 32 percent to 15 percent, surveillance cameras from 5 percent to zero, flavoured milk from 32 percent to 15 percent, plant-based food preparations from 5 percent to zero and passenger vans with seating capacity of 10 to 15 people reduced from 5 percent to zero.
Bernard says the budget also strengthens skills development through an increase in the Training Grant Scheme allocation from 0.1 percent to 0.5 percent, increasing funding from about $2.5 million to approximately $15 million.
He says 0.1 percent of the training levy has been allocated to the Fiji Learning Institute for Public Service, while businesses establishing training or technical centres will qualify for a 150 percent investment allowance.
He also says the Government has extended the 500 percent tax deduction for wages supporting apprenticeships, work placements and part-time employment until 31st December 2026, while the 400 percent tax deduction for employing people with disabilities has also been extended until the same date.
Bernard says the budget supports investment by introducing targeted tax holidays, including a 13-year tax holiday for cement mill investments of $20 million or more, a five-year tax holiday for mahogany sawmill investments of at least $5 million, and for joint ventures with at least 30 percent iTaukei shareholding in eco-tourism, culture and arts projects, a seven-year tax holiday for investments between $5 million and $10 million, and a 13-year tax holiday for investments above $10 million.
He says access to business finance will also improve through a five-year tax holiday for Peer-to-Peer Lending and Equity Crowdfunding platform providers, tax exemptions on interest income of up to $200,000 a year for investors in licensed Peer-to-Peer Lending platforms, tax incentives for institutional investors operating under the Access to Business Funding Act and an extension of the Capital Gains Tax exemption for the disposal of shares in listed companies undertaking transactions under the Act.
Bernard says FCEF looks forward to working closely with the Government to ensure the budget measures deliver real economic benefits for businesses, workers and communities across Fiji.
https://www.fijivillage.com/indepth/2026-2027-national-budget-aca663/
