Concerns have been raised in Parliament over $184.6 million in tax penalties waived or written off by the Fiji Revenue and Customs Service during the 2024-2025 financial year, with questions raised about fairness, transparency and accountability.
The issue was highlighted during the debate on the Fiji Revenue and Customs Service Annual Report 2024-2025 in Parliament.
Opposition MP Premila Kumar says the $184.56 million in penalties written off represents an increase of 68.5 percent from the previous year.
She says over a three-month period, the committee noted approximately $24.8 million in cash recovered compared to $92.1 million in waivers, which raises an important question about fairness.
Kumar says honest taxpayers, whether they are market vendors, small business owners or employees paying PAYE, are expected to meet their obligations on time and are entitled to ask why some taxpayers receive substantial relief from penalties.
She stresses that she is not suggesting every waiver is unjustified, as there may be legitimate circumstances where penalties should be reviewed or waived.
However, Kumar says when substantial amounts are being waived, the process must be transparent, consistently applied and properly governed.
She says otherwise, there is a risk of creating a perception that compliance is optional for some, which could undermine voluntary compliance and public confidence in the tax system.
Minister for Finance Esrom Immanuel clarified that the approximately $184.6 million figure primarily relates to penalties and accounting adjustments and should not be interpreted as the Government writing off $184.6 million in principal tax.
Immanuel says approximately $9.92 million in penalty waivers occurred in May, June and July 2025 in connection with the tax amnesty programme.
He further says on tax crime, financial crime, and anti-money laundering, FRCS continued to work closely with the Fiji Intelligence Unit and other law enforcement agencies in addressing tax evasion, fraudulent refunds, unexplained wealth, and complex financial crimes.Â
Meanwhile, Assistant Minister in the Office of the Prime Minister Sakiusa Tubuna says the committee identified the need for stronger reporting on tax crime investigations, border enforcement outcomes, customer service performance and the implementation of compliance measures.
Tubuna says as public expectations of accountability continue to grow, transparent and outcome-based reporting will be essential in enabling Parliament and the people of Fiji to assess the effectiveness of FRCS operations and investment decisions.
He adds that the committee found that FRCS continues to play a critical role in supporting Fiji’s fiscal sustainability and economic development.
