Govt revenue hits record $4.04 billion – Prof. Prasad

The government has collected a record $4.04 billion in total revenue from both tax and non-tax sources for the last financial year ending July 2025.

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad says this marks the first time Fiji has surpassed the $4 billion milestone.

He says tax collections alone reached approximately $3.5 billion, which is $185 million above the budget forecast and the highest ever recorded.

Professor Prasad says there are three factors contributing to the strong revenue performance including a strong rebound in economic growth, business activity and consumption spending; significant reforms introduced by the government, including VAT reductions; and a robust compliance strategy implemented by the Fiji Revenue and Customs Service.

He highlighted that the FRCS has implemented several initiatives and a total of 1,511 cases have been closed resulting in a confirmed tax liability of approximately $40.9 million.

He adds that despite the recent reduction in VAT rates, FRCS remains on track to maintain similar levels of revenue collection this year which is supported by strong economic growth and high consumer confidence.

Member of Opposition, Rinesh Sharma questioned whether the Ministry had conducted any consultations or analysis with businesses on the time, cost, and effort required to change prices during VAT adjustments, particularly for supermarkets with thousands of products.

In response, Professor Prasad explained that extensive consultations and preparations were done well before the VAT reductions came into effect.

He says most businesses have been able to pass on price reductions as a result of the VAT cut and the reduction in duties.

He says that while some might not have done so, the Price Monitoring and Enforcement Taskforce which has been established has been effective in advocating to businesses that the intention of these policies is to ensure benefits are passed on to consumers rather than pocketed as additional revenue.