Fiscal Review Committee wants departure tax to be increased

The Fiscal Review Committee is recommending a staggered implementation of the departure tax to $170 from 1st April 2025 and $200 from 1st April 2026 (to be pre-announced in the National Budget).

In a letter to the Minister for Finance, the committee says they had recommended a return to the $200 per head rate in a relatively short timeframe.

The Richard Naidu led committee says the government opted for a lower departure tax rate of $140 instead.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad has already indictated that the departure tax will be increased.

The Fiscal Review Committee adds that the increase in departure tax should be based on the condition that these funds, which are funded from tourism receipts, are principally committed to tourism infrastructure (in consultation with the tourism industry).

It says noting that some in the industry complain that Fiji does not offer enough “experiences” to tourists, there could be synergy in developing rural infrastructure with the specific aim of supporting tourism in those rural areas where opportunities are available and the local community is willing to accept the challenge of delivering activities and experiences for which tourists will pay. Professor Prasad will deliver the 2024/2025 National Budget at 10am next Friday.