FRCS collects $2.285b revenue in 2022-2023 fiscal year

The Fiji Revenue and Customs Service has collected a cumulative net revenue of $2.285 billion at the closure of the 2022-2023 fiscal year, exceeding the forecast by $33.3 million or 1.5 percent.

FRCS says the total revenue collections also surpassed 2021-2022 fiscal year collections by $592.7 million or 35 percent.

They say the positive out-turn stems from the outstanding July performance, which recorded net revenue of $213.9 million with a positive variance of $22.6 million or 11.8 percent against the monthly forecast.

FRCS Acting CEO, Malakai Naiyaga attributed the favourable cumulative collection to the performance of key tax categories such as VAT, which contributed $1 billion or 43.9 percent towards the total collections, income taxes, contributed $623.9 million or 27.2 percent, trade taxes, contributed $472.7 million or 20.6 percent and other taxes and levies contributed $188.8 million or 8.2 percent of the tax mix.

Naiyaga says the revenue achievement mirrors the earlier-than-anticipated overall economic recovery, underpinned by the consistently strong performance in sectors like services, wholesale and retail trade and manufacturing.

He says the positive variances observed in both the monthly and the annual collection point towards a significant overall economic recovery compared to a year ago.

The Acting CEO says this recovery can be attributed to various factors such as the services sector benefitting from increased tourism activity, higher income taxes paid by companies based on improved turnover and profits, and the pent-up consumer demand leading to increased VAT collections.

He says these factors collectively contribute to the economic upturn, reflecting a positive trend across different sectors and fiscal aspects of the economy.

Naiyaga says the revenue performance has set a good platform for the new 2023-2024 fiscal year noting the $3.1 billion revenue target.

He adds FRCS will be working in partnership with their stakeholders and taxpayers to continue to develop a national culture of tax and customs compliance.

The CEO says support will be provided to taxpayers to assist with tax filing and payment in addition to conducting various awareness and stakeholder forums for the 2023-2024 national budget.