No changes in personal, corporate or consumption tax in the budget – Prof.Prasad

Deputy Prime Minister and Minister for Finance, Professor Biman Prasad says people should relax as the government is not planning any changes in rates of personal, corporate or consumption tax in the 2024/2025 National Budget on June 28th this year.

While speaking at the Fiji Institute of Accountants Congress at the Shangri–La Fijian Resort, Professor Prasad says the government is leaning towards a distribution tax – on both dividends and head office remittances - at a relatively low level – possibly in the range of 5 percent.

Professor Prasad says they are talking to businesses about the merits of this measure and how such a tax could be most effectively be implemented.

They are also looking at an increase in departure tax in 2025.

The current recommendations they are considering are to take it from $140 to $170 from 1st April 2025 however, on the basis that the increment will go towards funding necessary tourism infrastructure, particularly in rural areas where they can harness SME participation and create new tourism experiences.

Professor Prasad says they know that there was a negative response to the 3 percent import duty imposed on manufacturers.

They are looking closely at the arguments to take this back to zero, and Professor Prasad says they will keep people informed on this. He says some people may criticise them for being too open about their policies.

Professor Prasad says after all, if they suggest a distribution tax, will there be a rush of distributions before Budget day.

He asks if they say that they are looking at the 3 percent import duty, will people slow down their importing for two months.

He says this could possibly happen but he would prefer that they signal to the business and investing community their intention to be open and transparent, even at the sacrifice of a few tax dollars here or there.

Other measures that the government is looking at include critical improvements to the Fiji Revenue and Customs Service Taxpayer Online System, TPOS.

He says they will also be working on other possible improvements in tax compliance.

Professor Prasad also says it seems clear to him that the earlier FRCS staff cutbacks were too much and they need to get more experienced people back into FRCS.