Business

Customs chief says tax collection on track

By RACHNA LAL Despite the big reform in the country’s tax regime which saw major tax cuts for individuals and companies, Fiji Revenue and Customs Authority (FRCA) has confirmed their
03 Oct 2012 12:29

By RACHNA LAL

Despite the big reform in the country’s tax regime which saw major tax cuts for individuals and companies, Fiji Revenue and Customs Authority (FRCA) has confirmed their revenue collections remains strong.
FRCA chief executive, Jitoko Tikolevu, made these revelations at the Fiji Economy Update 2012 organised by the University of the South Pacific’s School of Economics at the Holiday Inn Suva yesterday.
Government had announced major tax cuts in the 2012 National Budget which even saw corporate tax being reduced from 28 per cent to 20 per cent.
Mr Tikolevu said whilst many people had questioned what the trick was for the big tax cuts, an even more pressing question was where was the money going to come from to cover these tax cuts.
He said this had required careful planning and they had ensured there was give and take in the budget.
“There were giveaways as well as compensating measures which was very critical,” he said.
Mr Tikolevu said they expected about $100 million as loss of revenue because of the new tax regime this year.
“So we had to make sure we got back that $100m and that was part of the budget process,” he said.
“The figure is showing in our revenue collection and it is safe to say the revenue collection is speaking for itself.”
Mr Tikolevu is confident the recent tax reform would stimulate growth for sure.




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