The Fiji Revenue and Customs Service has collected a net revenue of $742.1 million for the quarter that ended on 31st October and has exceeded the forecast by $9.3 million, equivalent to 1.3 percent.
FRCS says this represents a significant 28.6 percent or $164.9 million growth over the same period last year.
They say the favorable outcome can be attributed to the exceptional performance in October, where a net revenue of $269 million was achieved, exceeding the monthly forecast by a remarkable $26 million, representing a 10.7 percent positive variance.
The overall revenue collections for the 2023-2024 financial year are projected at $3.1 billion, an increase of $855.4 million compared to the 2022-2023 fiscal year.
FRCS Acting CEO, Malakai Naiyaga credited the favorable cumulative collection to the performance of key tax categories such as VAT, which contributed $332.1 or 44.8 percent towards the total collections, Income taxes contributed $216.1 million or 29.1 percent, Trade Taxes contributed $132.6 million or 17.9% and other taxes and levies contributed $61.2 million or 8.2 percent of the tax mix.
He says the positive collections are indicative of a broad-based economic recovery across all sectors leading to increased revenue.
Naiyaga says this recovery signifies higher profits for businesses, increased individual income, and a surge in consumer spending.
The Acting CEO says notably, the improvements observed in these collections indicate a notable economic upturn compared to the previous year.
Naiyaga says this resurgence is attributed to several key factors, including the services sector benefiting from increased tourism, enhanced income tax payments due to improved turnover and profits by companies, and an upsurge in VAT collections driven by pent-up consumer demand.
He says these collective elements have played a crucial role in driving the economic upswing, reflecting a positive revenue collection trend across various sectors.
Naiyaga says the strong revenue performance has provided a solid foundation for the remainder of 2023-2024 fiscal year, now at 23.9 percent of the $3.1 billion annual target.
He says FRCS is committed to partnering with stakeholders and taxpayers to foster a culture of tax compliance.
The Acting CEO adds they are assisting taxpayers with filing and paying taxes and their team is also conducting awareness campaigns and stakeholder forums aligned with the 2023-2024 National Budget goals.
