Attorney General and Minister for Economy, Aiyaz Sayed‑Khaiyum says Fiji being listed in the European Union's blacklist as a tax haven does not have a direct impact however it paints a negative image and some people want to capitalize on that.
While responding to a question by SODELPA MP, Viliame Gavoka if Sayed‑Khaiyum can explain briefly the reasons Fiji's inclusion in the blacklist, Sayed‑Khaiyum says they will continue to have dialogue with the EU to have Fiji removed from the list but not at the expense of development and Fijian jobs.
He says the EU was trying to undermine the development aspirations of small countries such as Fiji in the guise of tax co-operation.
Sayed‑Khaiyum says that the process undertaken by the European Union was not transparent.
The Minister says the EU wanted Fiji to remove the 50 percent export income tax concession to Fijian exporters. 200 Fijian companies benefit from this incentive.
He says they also wanted that the 17 percent corporate tax deduction rate of global or regional offices relocating to Fiji. Organisations like ANZ have shifted their regional office from Melbourne to Fiji.
Sayed-Khaiyum says despite their request, the EU did not carry out any impact analysis on the removal of these incentives and how this will affect the Fijian economy.
He says that some of the incentives are modelled after countries such as China and Singapore, however these countries are not included in the EU blacklist.
We have sent questions to the EU.
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